Hedge fund recovery in full swing

The fund of hedge funds industry shrank by 10 per cent in 2009 but the trend has begun to go into reverse, according to the latest InvestHedge Billion Dollar Club survey. The research found firms with more than $1bn (£665m) in assets under management in funds of funds now control a combined amount of $625bn and UBS ended 2009 as the largest fund of funds group in the world. These largest funds of funds declined in assets by $72bn overall in 2009.