Hedge Fund Assets Hit $5 Trillion With Most Inflows Since 2007

Assets in the global hedge fund industry have surged to a record $5 trillion as investors poured money into alternatives and funds posted solid gains.

Hedge funds saw net inflows of nearly $34 billion in the three months through September, according to data from Hedge Fund Research Inc. released Thursday. That’s the most in any quarter since 2007, before the global financial crisis.

The surge in assets also came from investment performance, with total returns across all strategies averaging 5.4% over the quarter. Equity and macro hedge fund strategies led gains over the period.

Investors are increasingly looking ...