The growth of assets in hedge funds stalled during the
first half of 2008, with the global total edging up only very
narrowly to just under $2.7 trillion, according to the latest
analysis of the HedgeFund Intelligence database and our
associated mid-year surveys.
We should stress that these calculations are based on asset
numbers before the market turmoil of July and August, and
before the new and more dangerous phase of the global credit
crisis began to have an impact on markets in September. Through
negative performance alone, even before taking account of
likely redemptions, we would expect industry assets to fall
from this mid-year peak by year-end, and most likely by more
When we last conducted this exercise to measure the
aggregate assets for 1 January 2008, we calculated that total
industry assets had reached $2.646 trillion counting
only single-manager hedge fund assets and not...