Record capital inflow for Hedge Funds, +7% in 2014

Although their overall performance was mediocre in recent years and lower than most of the stock indexes, hedge funds have so far this year collected record amounts of capital from institutional investors such as insurance companies and pension funds, said a report released by Hedge Fund Research Inc. The reason? A possible trend reversal after 5 years of rising stocks’ prices, an assumption whose probability increased with the end of Quantitative Easing (QE) and a future likely rate hike by the Fed.