2004 hedge fund inflows set record

Net hedge fund inflows were a record $123 billion in 2004, according to year-end data from Tremont Capital Management's TASS Research service. That's a 70% increase from the $72.2 billion in 2003. Growth slowed toward the end of last year with the lowest net inflow — $16.3 billion — coming in the fourth quarter. Robert Schulman, co-CEO of Tremont Capital, attributed the slower growth in the second half to depressed hedge fund returns, which were the result of low equity market volatility.