Hedge Funds’ Corpus Soar in February

Global hedge funds are getting a major boost from pension funds and High net-worth individuals. The funds saw an inflow of $16.6 billion of fresh money in February. The global hedge fund business is now worth approximately $1.5 trillion. According to Reuters, this is its highest valuation since the financial crisis.

Hedge funds have posted strong return figures. The funds have shown an average return of 3.5% during the first quarter of 2010. This is in continuation to their stellar performance of a 20% gain in 2009. Hedge funds are now attracting new clients.

Recently, California State Teacher Retirement System, started identifying possible hedge fund options. CalSTRS has a $132 billion corpus. Industry analysts expect more pension funds to invest in hedge funds.