Hedge funds raised $2.7bn (€2.9bn) in net assets during 2000's fourth quarter and $8bn for the year.

According to figures from Tass Research, the information and research unit of Tremont Advisers, long/short equity funds attracted $1.75bn in the fourth quarter, making it the most popular asset class, and $12.4bn for the year. Long/short involves buying undervalued securities and selling a security that is seen as overvalued and that the fund does not own.