Investors Continue To Pour Money Into Hedge Funds
by Phillip Morton, Investors Offshore.com
25 December 2003

The latest study compiled by Tremont’s hedge fund and research unit, TASS, has revealed that investors allocated record net inflows into hedge funds for the second consecutive quarter.

According to TASS’s quarterly report, analysis shows that these ever-more popular alternative investments attracted a net $24.6 billion in the third quarter of 2003 on the back of inflows of $13.8 billion in the previous period. It brings the total invested in hedge funds to the end of September to $45.4 billion, significantly more than the $16.3 billion invested in the corresponding period last year.

In terms of strategies, investors appeared to favour Long/Short Equity which attracted some $5.9 billion in the third quarter, just ahead of Event Driven at $5.6 billion and Global Macro with $3.1 billion, though TASS reported that all strategies scored positive net inflows during this time.

The report noted that the strategies which attracted the highest inflows were those offering a broad market exposure, though TASS also believes the pattern of inflows reflected investors’ desire to participate in the stock market recovery witnessed through 2003.

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