Hedge-fund assets increased by 17 percent last year, reaching a record $2.63 trillion, according to Hedge Fund Research Inc.
Debt investors are funneling 17 times more cash into hedge funds than into junk-bond funds that returned more in each year since the crisis, heralding a shift from chasing yields to preserving cash as interest rates rise.
Hedge funds rose 3.4 percent in September, the most since May 2009, bringing them close to their peak before the financial crisis, Hedge Fund Research Inc. said.
Hedge fund assets rose the most on record last quarter, helped by market gains and deposits as investors took on more risk, Hedge Fund Research Inc. said.
"You're seeing flows into credit-focused funds that can go long and short."
- Ken Heinz on Oct 28, 2013