Funds of hedge funds shrinking

The average fund of hedge funds shrank in the last three months, according to figures from alternative assets researcher Preqin. The mean fund of hedge funds has $2.18bn (£1.34bn) in assets under management – down more than 20 per cent since 2010 and compounding an average 24 per cent loss between 2008 and 2009. Preqin estimates that the industry now has $910bn of assets under management, down from $1.25 trillion in 2008 before the financial crisis hit, though it expects growth during the next financial year, it says.