CNN Money – Hedge funds bounced back last month after a rough October, posting stronger returns thanks to the stock market rally and other factors.
While major hedge fund indexes are still calculating final performance numbers for the month, investors and other people who track the industry say many funds are in the black this month, a sharp reversal from October.
Hedge funds, the private investment pools catering to wealthy investors and, increasingly, pension funds, have posted lackluster returns this year, though some types of funds have fared better than others.
Interest in the funds has exploded in recent years, as investors disappointed with traditional funds started looking for new places to invest. Just last year, the hedge fund industry took in $123 billion in new capital, up from $72 billion in 2003, according to Tremont.
