Global demand for hedge funds to triple by 2010

The study showed by 2010 institution investment into alternative vehicles will increase to $1 trillion from $360bn, with the majority of money inflows going into fund of hedge funds. Brian Ruane, executive vice president at the Bank of New York, said: “Broadening acceptance of alternative investments as well as lower expected returns from traditional investments is driving demand for hedge funds among global institutional investors. They are increasingly recognising that hedge fund allocations have provided significant diversification benefits while delivering the net returns they require.”