Hedge fund assets reached $665 billion at the end of the second quarter, a record high fueled by stronger equity markets and an increase of $480 million from institutional investors, up from $353 million in the first quarter, according to two new studies.
Hedge Fund Research reported that the $47 billion increase in hedge fund assets in the second quarter was fueled mostly by good returns; just $1.4 billion came from new assets.
A separate study by LJH Global Investments and Reuters found that investors overall moved just $1.2 billion into hedge funds in the second quarter, compared with $1.4 billion in the first quarter. International investors cut allocations to hedge funds by 14% in the second quarter. Of the $480 million of institutional investment, LJH/Reuters said pension funds contributed just $19 million in the second quarter, down from $100 million in the first quarter.