Hedge Funds November Fundraising
Hedge Funds Raise $13 Billion During Month of November
November's gains in assets mark the fifth straight month of inflows as well as the biggest monthly flows since February when hedge funds took in $15 billion. In October funds took in $10.4 billion.
After a rocky start to 2010, when many prominent fund managers lost money, returns soon improved, helping spark renewed interest in the $1.6 trillion industry. June was the only month in 2010 with outflows, the research firms said.
The average hedge fund gained about 10 percent last year, lagging the Standard & Poor's 500 index which gained about 13 percent.
Despite hedge funds' more tepid 2010 returns -- in 2009 they rose 19 percent -- and the government's growing insider trading probe which frightens some investors, researchers at TrimTabs and BarclayHedge expect demand to stay strong. Source