Hedge funds saw a record net inflow of $13.8bn (€12.7bn) in the second quarter of 2003, according to Tremont/Tass Research, the US consultant.

Investors continue to put their faith in the best-performing strategies of the past year, such as convertible arbitrage and global macro. Convertible arbitrage funds saw $2.7bn in new assets, while global macro managers attracted inflows of $2.5bn. According to Tremont, $1.7bn of the net inflows to the sector were directed at new funds. At the same time, the rate at which funds were returned to investors slowed. In the first quarter, Tremont said $2.1bn in net assets were returned compared with $1.1bn in the second quarter.