Investor appetite returns: capital introduction for hedge funds

Investor interest in hedge funds has improved markedly in recent months. With almost every fund open to new investors, the environment for raising capital remains difficult.

Investors have regained their appetite for hedge funds and are once again allocating capital to managers who they believe can deliver consistent returns in an uncertain market.

Hedge funds raised over $38 billion in capital in the third quarter of 2009, with over two thirds of all hedge funds experiencing inflows during this period, according to recent data from Hedge Fund Research.

Inflows into hedge funds in the quarter were largely offset by redemptions and liquidations of around $37 billion