Hedge fund assets soared to $2.7 trillion (€1.8 trillion) at the end of September, boosted by significant growth in Brazil- and China-based funds and undercut by liquidations that sharply reduced gains from new launches in the second and third quarters.

Total assets rose by $339bn in the first three quarters of 2007, according to the report published by financial news publisher Institutional Investor and news service Hedge Fund.net. Assets grew 3.3% in the third quarter from $2.59 trillion in the second quarter.