February hedge fund inflows reach $16.6bn

Global hedge funds took in $16.6 billion (£10.7 billion) of new funding during February, latest figures have revealed.

The strong returns recently seen in the industry means pension funds and individuals with high levels of personal wealth have increased their interest in making investments, TrimTabs Investment Research and BarclayHedge said.

Hedge funds have generated a positive return for 12 consecutive months and assets in the industry currently stand at $1.5 trillion - a 16-month high.

Commenting, global equity strategist for TrimTabs Vincent Deluard said ’the hedge fund industry has gone global’, noting the US has lost 60 per cent of its business to other countries in the past decade.

Britain is currently the top performer in terms of emerging markets funds, while Canadian and Chinese funds have seen the best returns over the last ten years, the findings showed.

Hedge funds are currently the subject of proposed new European regulations, but a vote on the rules due to take place in the middle of last month was postponed because European leaders do not fully back the plans, which aim to improve transparency in the industry.ADNFCR-2318-ID-19717802-ADNFCR