Hedge fund assets not likely to return to 2007 peak until 2013, Cerulli says

Global hedge fund assets will return to their 2007 peak level of $2.9 trillion by 2013, according to the latest research from Cerulli Associates Inc. in Boston. Changes in the hedge fund industry, which include more investor-friendly policies, will lead to an annualized asset growth rate of around 12% over the next four years, the report said. “The recovery in hedge fund assets will be due, in part, to improvements in governance, increased transparency, and better terms for investors, such as lower fees,” Cerulli analyst Sunil Jatiani said in a statement. Global hedge fund asset peaked at $2.9 trillion in 2007, but have since declined to $1.9 trillion, largely due to the economic crisis. The near-term demand for hedge funds is expected to come mostly from institutional investors, as opposed to wealthy individuals, according to the report.