According to new research from TowerGroup, hedge fund assets will increase at a compound annual growth rate of 15% between 2005 and 2008, resulting in overall growth of 75% in hedge fund assets in that time. Hedge funds have become the hot pick as more investors look for ways to outdo average market returns. And in the years to come hedge funds are going to become more mainstream, especially as institutions increase allocations to alternative investments.

The research highlighted that although the assets of hedge funds will grow, the actual number of hedge funds will stay relatively the same.

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