It appears that hedge funds are set to take in a record amount of flows this year, as year-to-date they have amassed $164 billion, well ahead of the $126 billion they took in during 2006, according to Hedge Fund Research.
In the third quarter, they took in $45.2 billion, nearly half of that, $22.5 billion, from funds-of-funds. Event-driven funds took in $9.8 billion in new assets during the quarter. The second-most popular category was value arbitrage, which took in $9.2 billion, followed by emerging markets, which reaped $2.7 billion.
The best-performing category was short selling, which is up 6.16% year-to-date. Emerging markets rose 4.7% in the quarter and are up 20.06% year-to-date.