Capital raising for hedge funds remains difficult

Getting a slice of the capital pie

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The first quarter of 2010 has seen a deluge of reports announcing renewed inflows to the hedge fund industry. Investors worldwide are turning back to the sector in search of diversification and the chance of good returns.

Credit Suisse’s annual hedge fund investor survey for 2010 showed that across all investor types the average allocation increase expected for single-manager funds was 9%. Pension funds and insurance companies were expecting to increase their hedge fund allocations by 20%.

If that