Tough market conditions impact on appeal of hedge funds

Hedge funds may have started to lose their widespread popularity after experiencing tough market conditions, according to a new quarterly report. The amount of money invested in the market slumped to just $7.5bn over the second quarter of 2004, according to Chicago-based Hedge Fund Research. But the previous four quarters had seen inflows averaging $21.2bn - and they had never dipped below the $19.6bn mark. According to Joshua Rosenberg, president of Hedge Fund Research, market conditions in the first quarter hit many hedge fund investment strategies. "Less than ideal trading condit...