Despite still being down from peak highs two years ago, hedge funds attracted $150 billion in new assets in the first nine months of this year, according to a quarterly report by Barclays Capital's prime services division.

Despite that inflow, assets under management are down an average of 32% from peak levels. Even so, hedge fund managers surveyed for the report said they remain positive about adding more assets. Managers are “significantly more positive on the industry outlook,” said, Andrea Gentilini, Barclays Capital's head of strategic consulting in its prime services division and the author of the report, “Raising the Game.” The survey also found that hedge funds are now devoting more resources to differentiate themselves as a result of the financial crisis.

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