Hedge fund assets grew 62% last year, to $1.96 trillion, a level not seen since the precrisis days of 2007, according to Hennessee Group LLC.
To avoid double counting, fund-of-fund assets are not included in the asset growth analysis.
According to preliminary data, hedge funds had net inflows of $448 billion in 2009, the largest inflow of assets in the hedge fund history, according to Hennessee Group, which tracks the performance of more than 1,000 hedge funds across strategies.
Hennessee is an adviser to hedge fund investors.
In 2008, which included the failure of Lehman Brothers and Bear Stearns, hedge fund assets declined by $399 billion.
In 2009, 25% of the jump in assets was related to positive performance.