Hedge funds see deposit boost, study finds

11 January 2011

New research has indicated that in December, hedge funds received the largest amount in deposits for nine months largely due to a renewed appetite for risk among investors.

According to the latest report from TrimTabs and BarclayHedge, the sector attracted net deposits of $13 billion last month, with long-short equity funds beating other categories to earn a total of $2.5 billion.

On average, hedge funds made gains of 12 per cent throughout the course of 2010 and BarclayHedge boss Sol Waksman said in the document that he was upbeat about the sector's prospects for this year.

"We estimate that about 50 per cent of hedge fund managers will collect fees for their performance in 2010," TrimTabs president Vincent Deluard told Bloomberg. "We think many managers are likely to invest aggressively in 2011."

The news provider also reported today (January 11th 2011) that the Hong Kong-based Nine Masts Investment Fund returned around 20 per cent in its first eight months.

By Gary Cooper

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