Survey: Hedge funds taking hits

U.S. hedge funds have taken a hit over the past year as investors cut back on investments and losses ate into assets, according to a biannual survey published by Absolute Return magazine. The survey found that hedge fund assets grew by only 10% in the second half of the year, marking the smallest half-year increase since the survey was first compiled in 2002. Furthermore, three of the hedge fund industry's top 10 firms lost $24 billion in assets during the second half of the year, according to the survey. JPMorgan Asset Management, the largest U.S. hedge fund, managed $44.7 billion at the start of 2008, down from $56.2 billion last July. Goldman Sachs Asset Management posted the largest loss last year, knocking the unit into seventh place on list from the second place rank that it previously held, as assets fell 27% in the second half of the year to $29.2 billion, according to the survey.