Hedge fund assets reach $1.89 trillion

Total hedge fund asset levels increased by almost 6% to $1.89 trillion in the last quarter of 2006 from $1.79 trillion in the third quarter
The bump is the second largest quarterly increase since the first quarter of 2005.
For the entire year 2006, total hedge fund assets jumped to $1.89 trillion from $1.53 trillion in 2005, according to a report released today by Institutional Investor News and HedgeFund.net entitled “Hedge Fund Asset Flows & Trends Report 2006 – 2007.”
The report also showed that funds of funds assets rose 22% in 2006, or $174 billion, to $953 billion.
New allocations increased an estimated $125.7 billion, while performance increased total assets an additional $48 billion.
Europe is the fastest growing major investment region for most hedge funds, the survey found.
Assets invested there increased at a rate of 46% in 2006 to $276.5 billion. However, emerging market equity focused fund assets increased 58% in 2006 and emerging market debt focused fund assets increased 23.3%.