Hedge fund assets reach $4 trillion

Hedge fund assets have increased by 11% in the past six months while the industry's combined assets under administration have reached the $4 trillion mark, according to the 9th biannual HFMWeek Hedge Fund Administrators Survey. "Given the volatility and background of current markets, an 11% rise is very positive," said Charlie Kerr, publisher of HFMWeek, according to the report. Citco Fund Services had the strongest assets under management figure with $440 billion, a 13% increase in the past six months and a 40% leap from November 2006, according to Financial News. Citigroup Inc.'s Hedge Fund Services showed the most dramatic growth. Citigroup was boosted by its $1.47 billion acquisition of The Bisys Group Inc., a provider of administration services and fund management, which includes its $170 billion alternative investment services fund, increased the asset pool to $228.8 billion. Fund-of-hedge-fund assets under management increased 19% during the period. Fortis Prime Fund Solutions led the survey's fund-of-fund table with an 18% increase during the past six months to $200 billion.