Hedge fund assets have returned to their pre-crisis levels, as a result of net inflows and a strong performance last year, demonstrating a remarkable turnaround for an industry that was severely hit in 2008.

According to estimates from US investment adviser Hennessee Group, assets at hedge funds rose by 62% last year, an increase of $751bn (€554bn). This took assets to $1.96 trillion in 2009, meaning that industry assets have returned to their pre-crisis levels in 2007.