The Growth of Hedge Funds - Reasons for sustained Progress and its Effects on the UK Investments Market

Bachelor Thesis from the year 2013 in the subject Business economics - Business Management, Corporate Governance, grade: 1,1, University of East London, language: English, abstract: The hedge fund industry made its comeback in 2010 exhibiting an imposing growth. Global hedge fund assets augmented 11 percent to USD 2.02 trillion by the end of 2010 up from USD 1.82 trillion in the previous year. This took the industry back up to levels last seen in 2006 although still below the 2007 historic peak of more than USD 2.6 trillion. These capital inflows at a growing rate indicate that (institutional) investors keep on perceiving hedge funds as attractive alternative investment vehicles differing from traditional asset classes. Despite highly unstable and recessionary markets, many hedge fund managers succeeded in delivering robust returns.