New York (HedgeCo.net) – The mainstream media has been more than willing to report the woes of hedge funds this year, but despite all of their reports about poor performance, high fees and closures, the industry continues to attract new assets.

SS&C reported through their GlobeOp Capital Movement Index that investors increased their allocations to hedge funds by 0.83% in their December report. The index measures subscriptions versus redemptions at the beginning of each month and the December increase was an unusual one. Recent history shows very small increases or declines in assets being allocated to hedge funds. The increase of 0.83% is the biggest December increase since 2011.

The increase in volatility during the second half of the year is driving the increases according to SS&C. “This favorable reading continues the trend of recent months, indicating that the hedge fund industry is benefitting from heightened market volatility,” Bill Stone, chairman and chief executive of SS&C Technologies, said in a statement.

Rick Pendergraft
Research Analyst
HedgeCoVest