Hedge Funds Hit $4 Trillion Mark, Survey Says

Date: Monday, December 10, 2007
Author: The New York Times

Hedge fund asset levels jumped 11 percent in the six months from April to November, while the industry’s combined assets under administration have reached the $4 trillion milestone, according to a new survey.

Buoyed in part by an increase in pension fund allocations to alternative strategies, hedge funds increased by 11 percent for the period, according to the ninth bi-annual HFMWeek Hedge Fund Administrators Survey.

Citco Fund Services topped the division with $440 billion in assets under management, a 13 percent increase in the past six months and a 40 percent leap from November 2006.

Citi’s Hedge Fund Services showed the most dramatic growth. Citigroup’s $1.47 billionn acquisition of Bisys, a provider of administration services for fund management companies, including its $170 billion alternative investment services fund, boosted the the asset pool more than tenfold to $228.8 billion.