Hedge Fund Assets May Rise 10% in Second Half

Date: Wednesday, October 7, 2009
Author: New York Times

After suffering through a tough period of falling asset values and client withdrawals, the hedge fund industry may see assets rebound by 10 percent or more in the second half of the year, according to one data provider.

HedgeFund Intelligence said on Monday there were signs that investors were beginning to put money back into hedge funds, while continued performance gains in the third quarter would also increase asset levels, Reuters reported.

“We would not be surprised to see industry assets rise from the mid-year levels by at least 10 percent before the end of 2009,” Neil Wilson, editorial director of HedgeFund Intelligence, said.

Signs of recovery in the industry have already been trickling in, with liquidations declining in the second quarter and gains increasing. Hedge fund managers posted an average 9.1 percent gain in the second quarter.