Hedgies stage mini-recovery

AN upturn in performance in the final quarter helped the beleaguered hedge fund industry take total capital invested above $2 trillion (£1.29 trillion) at the end of last year, new research says.

Assets under management recovered to $2.01 trillion at 31 December, up two per cent from the end of the third quarter, according to Hedge Fund Research.

The gain more than offset a nominal net capital outflow of $127m. HFR president Ken Heinz said the “complexity and breadth” of the Eurozone crisis had contributed to a challenging year for hedge funds.