Hedge fund industry assets increased 7.5%, or $100 billion, in the second quarter to $1.43 trillion, according to Hedge Fund Research.
Much of the growth was fueled by performance gains in the quarter, with the HFRI Fund Weighted Composite index returning 9.13%.
The industry still experienced net redemptions, but they were down from the two previous quarters, according to an HFR news release. Investors pulled a net $42.8 billion from hedge funds in the second quarter, down 58% from the $103 billion withdrawn in the first quarter and 72% less than the $152 billion redeemed in the fourth quarter of 2008.
Separately, HFR reported that hedge fund-of-funds assets totaled $530 billion as of June 30, down 36%, or $295 billion, from a year earlier.