Hedge funds thrive in third quarter

Investors pumped $45.2 billion into the hedge fund industry during the third quarter, according to data from Hedge Fund Research. Total inflows into hedge funds stood at $164 billion, surpassing the previous high of $126 billion, which was set last year, according to the Chicago-based hedge fund data firm. Total industry assets stood at $1.81 trillion at the end of the quarter. Event-driven hedge funds received $9.8 billion in new assets, relative-value arbitrage received $9.2 billion, and equity hedge got $8.5 billion. Half of the hedge fund industry's new capital — $22.5 billion — came from investments through funds of hedge funds. Year-to-date, fund-of-funds have attracted $48 billion in asset inflows, pushing total assets within those vehicles to a record $773 billion.