Performance rally sees hedge fund assets soar

A performance-based rally has driven hedge fund industry assets to nearly $665bn, according to a recent study by Hedge Funds Research.

The $47bn second quarter increase in industry size included only $1.4bn in new assets, which showed the role of performance as a key factor in asset appreciation, according to HFR.

Directional trading and fixed income strategies benefited most from the market upturn.

'Most notable were the 18.2% increase in HFRI Equity Non-Hedge Index, the 13% rise in the HFRI Em