Highbridge’s inflows signal return to funds

Hedge funds are back in the game. After a dismal 2008 that saw record losses and record withdrawals, investors are tentatively returning to the sector, prompted by signs that funds made money even as markets plunged this year.

Highbridge Capital Management, once the world’s biggest hedge fund, was a big winner, with $1bn (€757m) of net inflows this year, including $225m from majority owner JPMorgan, according to people familiar with the fund. It ended the quarter with $20bn under management.