Hedge fund industry reaps $194.5bn record

Industry enjoys record year in 2007 with almost $200bn inflows, with relative-value arbitrage and event-driven the most successful strategies in Q4

The hedge fund industry attracted a record $194.5bn in 2007, bringing total assets to $1.87trn, according to data released by Hedge Fund Research (HFR). Inflows for the year outpaced 2006's $126.5bn, the previous annual record, and represent a 54% jump from year to year. However, the Q4 inflow of $30.4bn was well below the pace set by the first three quarters and continued a pattern of new capital dropping off towards the end of the year. Relative-value arbitrage and event-driven were the most successful strategies at attracting news assets in Q4, bringing in $9.9bn and $5.3bn respect...