The Hedge Fund Capital Rises to a Record in the 2Q of 2014Following to Hedge Fund Research (HFR) survey, total hedge fund capital increased to a record in the second quarter of 2014, led by an increase in inflows to activist funds and arbitrage.
Capital increased to $2.8 tn, surpassing the record of $2.7 tn set in the previous quarter, as the allocation of new capital to hedge funds increased to $30.5 bn from $26.3 bn, the research firm says in a press release.
New investment into event-driven hedge funds ‒ those that promote activist strategies or focus on distressed companies ‒ jumped to $11.7 bn in the second quarter from $4 bn in the first quarter, HFR says.
New capital invested in funds with an activist focus rose to $5.9 bn in the second quarter from $3.5 bn in the first. The HFRI Activist Index, which measures the performance of activist funds, rose 2.8 percent in the first half. The second quarter saw a strengthening of the trend to more rapid growth in the larger, more established hedge funds with more sluggish increases in smaller, newer funds.Source: IR Magazine