Hedge Fund Industry Assets Set New Record

May 8, 2011 James Heinsman Hedge Fund News

According to recent data, hedge funds have reported significant gains in April as a result of the increase in precious metal and energy prices. However, the funds still trail behind the larger market.

Still, the recent climb has encouraged pension funds, endowments and other investors to place $32 billion in hedge funds during the first quarter. This has raised the industry’s assets to a record $2.02 trillion.

What Next?

This month may have a different effect on the industry, however. Commodity prices have fallen this week. For example, the price for barrels of oil has decreased 8.6%.

“Gold, silver, and oil were strong performers in April. While silver and gold experienced a correction over the last few days, most managers believe silver and gold will continue to increase until there is evidence of a rise in interest rates, which would strengthen the dollar,” explained Charles Gradante of Hennessee Group.

Charles Gradante, Hedge Fund Industry News, Hedge Funds, Precious Metals,

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