Hedge Funds Take In $13.8B In Q4

The firm said that investors poured $13.8 billion into the industry in the fourth quarter. It is the largest quarterly inflow since the first quarter of 2008, before the economy began to tank.

“In many respects, hedge-fund performance in 2009 suggests an aggressive return of risk—essentially the reverse of the financial crisis of 2008,” Kenneth Heinz, HFR president, said.

While the inflows are good news to be sure, they didn’t do much to blunt the industry’s outflow for the year. All told, investors withdrew $131 billion from hedge funds in 2009.