Hedge fund assets may top the previous $2 trillion high by the end of next year as double-digit average returns lure investors, said Barry Bausano, Deutsche Bank AG's global co-head of prime finance.

Hedge fund assets parked with Deutsche Bank have risen recently and global investors plan to allocate new capital next year, Bausano said. His division provides services and products to the hedge fund industry ranging from securities lending to financing and derivatives.

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