Hedge Fund Assets Top $1 Trillion

April 28, 2005 (PLANSPONSOR.com) - Total hedge fund assets pushed past $1 trillion in the first quarter of 2005 for the first time ever.

According to data from Hedge Fund Research (HFR), global hedge funds now manage over $1 trillion, compared to $972.6 billion at the end of 2004. According to the figures – which were reported by Reuters – hedge funds pulled in $ 27.35 billion in new money on the quarter, slightly more than the $27 billion seen in the last three months of 2004.

HFR claims that pension funds, charities and college endowments invested billions of dollars in hedge funds in the last few months, despite a struggle from some managers to see the returns that investors expect.

Although the industry is still only one-eighth the size of the mutual fund industry – and appeals to a different audience – it has ballooned from $150 billion only a decade ago.

Distressed debt hedge funds, as well as funds focused on mergers or acquisitions, grew at the fastest pace in the industry, pulling in $5.9 billion by the end of the first quarter. In total, these types of funds now have $135.8 billion in assets. Currently, fund of hedge funds have about one-third of all industry assets.