Global investors added a net $5.6bn (€6bn) in net new assets to hedge funds in the first quarter of 2002, ending the record pace of growth achieved in 2001, according to Tremont Advisers' TASS Research.

In its quarterly analysis of industry fund flows, TASS Research found that investors continued to favour strategies such as event-driven and convertible arbitrage, while, for the first time since the end of 1998, long/short equity funds suffered a net loss of assets.