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From the Opalesque team:

At the beginning of 2009 hedge funds were still reeling from record outflows. But even though redemptions continued through the year, allocations picked up pace and the industry began to see some signs of activity in new product launches. These factors, along with record breaking strong performance allowed hedge funds to close out the year with approximately $1.5tln in assets under management. (Hedge fund industry estimates from BarclayHedge/Trim Tabs research)

From January until September 2009 it is estimated that hedge funds grew by $33bn.

During this same time the number of assets under administration amongst the top 40 hedge fund administrators grew by approximately $270bn (according to research released by New York firm Carbon 360).

The top 40 hedge fund administrators saw their asset base grow due to multiple factors, but mainly growth was driven by investor demand for third party administrators, by record-breaking performance gains by fund clients, and by new product launches.

More funds budgeting for full service Investor demands throughout the year for top of the line infrastructures at their hedge fund investments were a driving force for new assets into the administration industry. Madoff and the other multiple Ponzi schemes uncovered during late 2008 and early 2009 saw investors demanding that even the most established names in the hedge......................

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