Hedge fund assets to hit $256 billion by year end - prediction

Rising-graphAssets under management in hedge funds tracked by research firm eVestment are expected to rise to $256 billion (€187 billion) by the end of 2013, following another month of market gains and inflows.

Industry assets are at a five-year high, says the researcher, thanks to growth in 2013 that was nearly 80% greater than the increase seen in 2012.

The firm says hedge funds may even be gaining ground against long-only equity funds.

“There has been a noticeable decline of allocations to traditional long-only equity products across both developed and emerging market exposures in the third quarter [and] an increase of interest in both segments of the hedge fund space beginning in the second quarter and persisting through November,” says the firm.

Not every type of hedge fund did well. Macro fund flows were negative in November, says eVestment, and inflows into credit funds were well below the average in the past 12 months.

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