Global Hedge Funds Reach into the Billions

Tremont Capital Management’s TASS Research recently released data that showed 2003 was a record year for in- flows into hedge funds, in particular due to increasing interest from institutional investors. By December 31, 2003, $72.2 billion was invested in hedge fund strategies, leaving the size of the global hedge fund industry at the end of 2003 at $750 billion. The European hedge fund industry has recently seen significant investor interest from larger pension funds. Hermes Investment Management Limited, the manager of the United Kingdom’s largest retirement fund — the British Telecoms pension fund — recently announced plans to allocate £500 million in up to 40 hedge funds, managed by both London- and U.S.-based investment managers.