Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Money Management Executive can deliver.
  • Exclusive Online Only Content
  • Free Daily Email News Alerts
  • Asset Management Blogs

Soft Dollar, High Oil Prices Fuel Surge in Hedge Funds

Assets in the hedge fund industry swelled to $1 trillion in the first quarter, although demand for the high-return, loosely regulated investment vehicles remained at 2004 levels, according to a report released by Hedge Fund Research.

The industry added $27.35 billion in the first quarter, compared with $27 billion in the previous quarter and $22.2 billion in the year-ago quarter. The growth of hedge funds, which had only $150 billion in assets a decade ago, can be attributed largely to the continual fall in the dollar and a surge in oil prices, officials said.