New York (HedgeCo.Net) According to hedge fund research group HFR, the hedge fundindustry experienced net inflows of $76.4 billion in 2014 and that has pushed the assets under management in the industry to just shy of $3 trillion.

Interestingly, the inflows slowed in the fourth quarter after sizable inflows in the second and third quarters. The hedge fund industry as a whole lagged the S&P 500 considerably in 2014 which makes the growth in assets that much more astounding. It is also interesting to see the inflows reaching levels not seen since before the bear market of 2007-2009.

Despite the overall performance and the high fees, investors are flocking to hedge funds. HedgeCoVest might be a better alternative as the fees for replicating some top hedge fund strategies are much lower than the typical hedge fund. In addition, the lack of returns may be tied to the high fees as most performance numbers are reported net of fees.

The other thing to keep in mind is how many hedge funds, especially those that truly hedge their portfolios and positions, will tend to lag the market when the market goes through a strong rally. However, when the market is choppy or moves down, hedge fund strategies tend to perform better and if done properly, they can lower the investors overall risk. HedgeCoVest offers the strategies without the high fees.