Soft Dollar, High Oil Prices Fuel Surge in Hedge Funds
May 9, 2005
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.