Global hedge funds' assets increased by 13% in 2010 to $1.9 trillion, the second successive year of growth. Barring further economic turbulence, growth is set to continue in 2011, with funds under management likely to recover to pre-crisis levels by the end of the year. Growth in assets in 2010 was due both to a 10% performance return during the year and a $65bn net inflow of funds, as net asset flows turned positive for the first time in three years. Prior to this, hedge funds saw a surge in redemptions and fall in liquidity, particularly in the latter part of 2008 and first half of 2009. The number of hedge funds totalled over 9,500 at the end of 2010, with new hedge funds launches outpacing fund liquidations for the first time since 2007.
Taken from the webiste: thecityuk.
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