onwards and upwards

The hedge funds industry is growing rapidly and is likely to continue doing so into 2004, according to industry players, but its expansion will bring new pressures to bear on strategies and managers.

Institutional investment has been the strongest trend in the industry, promising to bring huge inflows in 2003 as previously sceptical investors gain confidence in the asset class.

There is currently around $700bn invested in hedge funds globally, 2% to 3% of equity market capitalisation, and the indu