Hedge funds might be red hot today, but, according to a new study from the U.K.-based think-tank Create and financial services consulting giant KPMG International, their popularity will cool in the coming years.

The study, which taps 550 global fund executives from across 35 countries, admits that since the onset of the latest bear market, the growth of hedge funds has been nothing short of spectacular. Driven by mutually reinforcing factor - such as the prolonged bear market, wealthy investors seeking to quickly recoup losses from that bear market and the movement of talented investment managers to the field who are capable of delivering big returns - an amazing 8,000 hedge funds now control assets in excess of $1 trillion. That's 2% of global investment assets.

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