Hedge Funds

Study projects rapid hedge fund expansion to continue


Assets managed by the hedge fund industry, including single hedge funds and funds of hedge funds, are predicted to increase by 75% by 2008 - a compound annual growth rate of 15% over the next three years - according to a recent report from consulting firm TowerGroup.

Contributing to the continuing influx of assets into hedge funds will be the perception of hedge funds as more mainstream investment vehicles, increased allocations from leading institutional investors into alternative investments, the proliferation of funds of hedge funds, and new retail investment products that will lower the barriers to entry.

The report adds that while hedge