Assets in global hedge funds have now reached more than US$1.5 trillion, the bulk of it in the U.S., according to new research compiled by HedgeFund Intelligence.

HFI found that U.S.-based hedge fund firms with assets of at least US$1 billion in assets have combined total assets of more than US$850 billion. The research, which was completed February 2006, also found smaller funds in the U.S. – below US$1 billion – have combined assets of at least US$200 billion, leading to a total asset figure of well over US$1 trillion for the U.S. hedge fund industry.

European hedge funds have also seen strong growth in assets, with total funds under management for the region reaching more than US$325 billion, according to HFI’s latest data. This represents an increase of over 25% from the year before.

In the Asia-Pacific region hedge fund assets almost doubled during the survey period, passing the landmark level of US$100 billion. Total assets for the region is now over US$115 billion.

In addition to the three largest regions, further research suggests there is at least a further US$50 billion of assets being managed by hedge funds in other markets in the rest of the world. It notes that markets showing robust asset growth include Canada, Brazil and South Africa.

HedgeFund Intelligence managing editor, Neil Wilson, commented, “The passing of the US$1.5 trillion mark shows how strongly the hedge fund sector is growing, particularly given the difficult market conditions encountered by many hedge fund managers in the past 12 months. All three of the major regions are attracting a good flow of new investment money. Europe and Asia are growing very quickly off relatively small bases, and the U.S. funds are doing remarkably well in a market that could be called ‘mature’ in hedge fund terms.”