Mutual funds gaining ground on hedge funds?

Date: Wednesday, February 18, 2009
Author: Kevin Lim, Reuters.com

Hedge funds have gained a increasing share of the investment pie in recent years but the trend could could be reversing, judging by separate comments made by UBS and Deutsche Bank on Tuesday.

Timothy Bell, global head of hedge funds advisory at UBS Wealth Management, said hedge fund assets could fall further to $1.2 trillion this quarter from $1.4 trillion at the end of 2008 and $1.93 trillion at their peak in mid-2008.

At the same time, Deutsche Bank’s DWS unit said it saw inflows into its Asian mutual funds in the first six weeks of 2009.