Michelle Celarier, editor, AR: Absolute Return + Alpha
Although the US hedge fund industry endured tough setbacks in
2010 - including some high-profile shutdowns and a government
insider trading investigation that ensnared several firms - it
is finally clawing its way back to its peak.
Some 225 hedge fund firms with $1 billion or more in assets
managed a combined total of $1.297 trillion as of 1 January,
2011, according to AR's biannual Billion Dollar Club survey,
which tracks hedge funds in the Americas (including Canada and
Latin America) managing $1 billion or more in assets. That
constitutes about 10% more capital than these funds managed a
year ago, when 213 $1 billion-plus firms held a combined total
of $1.182 trillion, and a 20% increase from the industry trough
of $1.084 billion managed by 205 firms in July 2009....