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What Recession? Hedge Funds Top $2 Trillion

Things have never been better for hedge funds.

The global hedge fund industry topped $2.02 trillion for the first time ever, according to Hedge Fund Research, which follows the industry.

According to HFR, this figure is up $102 billion from the first quarter of 2010 and is more than the industry had in Q2 of 2008, when assets reached $1.93 trillion.

Take it away, CNN:

These numbers reflect money that hedge funds took in from new clients in the quarter, as well as investment gains realized on trades of stocks, bonds, currencies and other assets.

In the first quarter, investors allocated $32 billion in new capital to hedge funds, which was the largest quarterly inflow in more than four years.

Kenneth Heinz, president of Hedge Fund Research, said the combination of strong performance and investor inflows "validates that the hedge fund industry has completed its recovery from the financial crisis."

So far, the only thing hedge funds have to fear is some (relatively light) federal oversight and some lawsuits for insider trading.

Or in other words, the price of doing business.

Phil Albinus is the former editor-in-chief of Advanced Trading. He has nearly two decades of journalism experience and has been covering financial technology and regulation for nine years. Before joining Advanced Trading, he served as editor of Waters, a monthly trade journal ... View Full Bio

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