Hedge Fund Universe Gorwth & Composition

The wide variety of hedge fund strategies available to investors allows increased portfolio diversification benefits. The hedge fund universe strategy composition (as measured by the number of funds per strategy as a percentage of the total number of funds in the universe) is dynamic and adjusts as strategies move in and out of favor with investors. For example, there was a shift in recent years from a large percentage of hedge funds being Macro and Emerging Markets strategies to an emphasis on more conservative Value and Market Neutral strategies.