Hedge Funds

Hedge fund growth to remain robust, says FRC


The hedge fund industry is projected to see sales growth of nearly 12% next year, according to an analysis by the Financial Research Corporation (FRC), a Boston-based consulting firm. The industry's sales rate will outpace that of mutual funds, sales of which are expected to decline more than 10% over the same period.

FRC predicts a compound annual growth rate of 18% for hedge fund assets from 2006 through 2010, at which time the industry is expected to hold nearly $2.7 trillion in assets, well over double the $1.1 trillion now estimated to lie in hedge fund coffers.