Hedge Fund Research (HFR), a source of hedge fund information and performance data released its third quarter report on the industry showing the total size of the hedge fund industry at $600 billion, a 4.7% increase in asset growth from the second quarter and a 10.6% increase from the start of 2002.
The report also shows that as at end-Q3, an additional $152 billion was held in the fund of funds segment of the market.
Josh Rosenberg, managing director of HFR, says that an estimated 274 hedge funds and fund of funds began operations in the quarter, bringing the estimated total of funds operating in the market to 5,135. He adds that this represents a 5.3% sequential increase in the number of funds from Q2.
Chairman and founder of HFR, Joseph Nicholas, adds, “Hedge funds have clearly demonstrated their strength as a wealth preserver during the recent periods of market decline and high volatility. Investors are focused on the benefits and opportunities that hedge funds can bring to an investment portfolio and are allocating significant assets to the investment class.”