Hedge fund assets are expected to grow to $2 trillion by 2010, and...

Hedge fund assets are expected to grow to $2 trillion by 2010, and institutional investors will be responsible for a quarter of that, with about $527 billion in hedge fund assets, according to a new white paper by Putnam Lovell NBF and consultant NewRiver. Year-old estimates place the hedge fund market at about $530 billion, with $87 billion from institutional investors. Roughly half the increase, $800 billion, will be new money, and about $700 billion will be the result of market gains, according to the paper, which assumes no asset growth this year and annualized gains of 9% in the future.