Hedge fund assets increased almost 6% during 2012 to hit $2.6 trillion as performance added $116.3 billion to the industry total, reports eVestment.
Assets were also boosted by investor inflows of $29 billion, a 1.18% increase for the year. However, hedge funds lost assets as investors withdrew $10.5 billion in the fourth quarter of 2012.
The performance-based gains appear to counter reports claiming poor hedge fund performance has disappointed investors who are redeeming. However, Peter