Due to the fi nancial crisis, the fund of hedge funds sector saw a
decline in aggregate assets from $1.28tn in 2008 to $948bn in 2009,
as shown in Fig. 6, which was a 26% decrease in the industry’s
total assets under management (AUM). This decline in global
AUM was mirrored by the European fund of hedge funds industry,
which decreased by 16% from $383bn in 2008 to $322bn in 2009.
However, since 2009 there has been some evidence of a recovery,
with the AUM of both European wfhand the industry as
a whole increasing between 2010 and today. During this period
the sector has seen new allocations to hedge funds as a result of
improved investor demand, created by wide-ranging changes in
the industry. With many investors looking to increase allocations
still further in 2012, there is the potential for further growth over