Assets under management of Ucits hedge funds rose 7.5% in the second quarter to €129 billion, according to index provider Alix Capital.
But only half of these funds have had positive performance so far this year.
While there were some top performers, such as the Renaissance Ottoman Fund (Emerging Market), which has returned 21.48% this year, Alix Capital's index showed that 49.7% of Ucits hedge funds have failed to generate positive performance since the beginning of 2012.
The overall performance of the index was modestly positive, though, at 1.41%.
Sixteen new funds were launched in the quarter and four were closed, causing the number of funds to rise from 764 at the end of March 2012 to 776 at the end of June 2012.
The 20 largest funds in the index account for €64.9 billion in assets under management, equivalent to half the assets of the entire index.
©2012 funds europe