Hedge Funds Attract Cash After Four Quarters of Withdrawals

"Hedge funds attracted $1.1 billion from investors in the third quarter, ending a one-year streak of net withdrawals, according to Hedge Fund Research Inc.

Industry assets increased to $1.53 trillion from $1.43 trillion at the end of the second quarter, the Chicago-based firm said today in an e-mailed statement. Investors pulled $330 billion from funds in the 12 months ended June 30, Hedge Fund Research said.

'The robustness of the stock-market rebound has sparked investors to get back in,' said Robert Sutton, a partner at New York-based law firm Kirkland & Ellis LLP, who advises hedge funds."

This article appeared in its entirety in the October 19, 2009 edition of Bloomberg News.