Investor confidence returning, new hedge fund figures show

Confidence levels among the world’s investors are beginning to bounce back, newly-published figures suggest.

Despite the relatively high levels of pessimism surrounding some aspects of the world economy, new statistics released by the US-based Hedge Fund Research (HFR) show that the value of assets under management within this investment sector rose by $100 billion over the second quarter of 2009.

This represents the first increase in asset value seen since the second three-month period of 2008, with investment experts placing this renewed confidence down to a number of factors.

Ken Heinz, president of the Chicago-based HFR, said: ’Improved liquidity in credit markets contributed to narrowing some of the pricing dislocations that were created near the end of 2008, and the combination of improved credit markets, gains in emerging markets, and decreased risk aversion have driven broad-based gains in 2009.’

As a result of this recent increase, the value of global hedge fund assets now stands at $1.43 trillion.

Meanwhile, the Guardian has reported that UK-based hedge fund managers have stepped up their efforts to oppose proposed European Union rules aimed at shackling them with tougher regulations.ADNFCR-2318-ID-19278284-ADNFCR