A net $42.3 billion flowed into hedge funds in the first three quarters of 2010, according to just-released data from Hedge Fund Research.
The surge in hedge fund investment brought total industry assets to $1.8 trillion as of Sept. 30, up from $1.6 trillion at the end of 2009.
HFR’s research showed that the positive flows in the first nine months of this year are in marked contrast to 2009, which saw a net outflow for the year of $131 billion, and 2008 with a total net outflow of $154 billion.
Also, hedge funds of funds saw net inflows in the third quarter of $256 million, compared to net outflows in the first half of 2010 of $13.9 billion, $118 billion in all of 2009 and $41 billion in 2008.
According to HFR researchers, 715 new funds were started in the nine months ended Sept. 30, while 585 funds were closed. In the 12 months ended Dec. 31, 2009, 784 hedge funds were opened and 1,023 closed. In 2008, 659 new funds were launched and 1,471 funds were shuttered.