The assets in US hedge funds have increased multifold since the year 1993. One point that raises the eyebrows is the fact that though hedge fund comprises a small portion in the US financial market, the rate of growth however is significantly higher than the other sectors. Moreover, it is estimated that it will grow significantly in the days to come.
If the recent reports are to be believed, then a single hedge fund manager is responsible for a daily trading volume of an average of 5% of the New York Stock Exchange. Another report says that the convertible bond market is dominated by the hedge funds.
There is no denying that there are high reaps with hedge fund but this growth has also given rise to trouble mongers and troubleshooter. In recent past, there have been many cases of fraudulence, where the hedge fund advisors have cheated the hedge fund investors.
So, Beware and happy investing.
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