Hedge Funds Expected To Perform Well In 2004

by Carla Johnson, Investors Offshore.com

08 January 2004

2004 looks set to be a good year for hedge funds, according to a recent report from the Wall Street Journal.

Although the hedge fund sector has experienced substantial growth in recent years, with invested assets increasing from $50 billion in 1990 to between $600 billion and $700 billion in 2003, hedge funds remain a relatively small sector within the investment savings market.

However, according to the WSJ, this is likely to change in 2004, with hedge funds expected to significantly out-perform equities and bonds.

Speaking to the US business daily, deputy chairman of Credit Suisse Asset Management, Robert Parker predicted that assets managed by hedge funds could increase by around a third over the coming 18 months.

Meanwhile, Gaurav Amin, senior research analyst with Schroder Hedge Funds suggested that around 2,000 new hedge funds will be created during the course of 2004. However, he also pointed out that around one fifth of the current 6,000 hedge funds are likely to disappear as a result of the increased competition.

Recommended