NEW YORK (Reuters) - Investors poured $3.6 billion in fresh money into global hedge funds in the second quarter, data provider HFR said on Friday, helping drive the industry's assets up.
In the first half of the year, the industry lured $12.64 billion, HFR showed. The positive net money inflow so far this year comes after investors redeemed $55.4 billion from funds last year.
HFR said capital flew to large hedge funds, those managing over $5 billion. Smaller firms experienced an outflow.
Equity hedge funds led the inflow in the second quarter of the year, adding $2.8 billion in new money, followed by event-driven funds.
The last six years have been challenging for hedge funds, with outflows surpassing inflows for most of the period.
Hedge funds ended June with $3.95 trillion in assets, up 1.8% from March. Growth was mainly driven by the funds' performance in the second quarter, HFR showed.
Hedge funds rose on average 2.15% in the last quarter and 3.4% in the first half of the year.