WEST PALM BEACH, FL (HEDGECO.NET) – The growth in hedge fund assets has continued through the third quarter, according to new data from the Chicago based Hedge Fund Research Inc. Hedge funds areestimated to have added $16.9 billion in the third quarter of 2004. That figure is more than double the $7.5 billion gained in the second quarter.
Joshua Rosenberg, HFR president, said hedge fund inflows have been very strong during the past several quarters; he noted however, that the second quarter inflows were not as strong. According to Rosenberg, economic concerns kept money managers on the sidelines during that period. Those concerns have abated, Rosenberg added.
The total �hedge fund assets rose 2.7% to $889.8 billion because of stronger inflows and performance gains�, according to HFR data. Data from many other hedge fund data tracking firms however, report total hedge fund assets in excess of $1 trillion mark. Further HFR data shows that hedge funds gained 0.9% during the third quarter of 2004. HFR reported a loss of 1% for hedge funds during the second quarter. In the same third quarter of 2004, the Standard & Poor�s 500 stock index and the Dow Jones Industrial average both recorded losses of 1.3% and 3.4%.
HFR also said that strategies investing in situations such as spin-offs, mergers and bankruptcy reorganizations were the most popular for managers during the third quarter. The energy related strategies however, realized more impressive gains due to spikes in crude oil prices. Energy strategies gained 8.8% for the third quarter, pushing its year-to-date average to 21.4%.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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