Despite all calls to the contrary the hedge fund bandwagon rolls right along. According to a report from HedgeFund Intelligence the global hedge fund industry now manages some $1,500 billion in assets. Significant growth was seen in European hedge funds which are based largely in London.

Speaking of hedge fund assets two new big hedge fund launches are in the news. reports on a $2 billion hedge fund formed by former Morgan Stanley executives. DealBook points to a new fund managed by an LBO firm.

One could argue that the hedge fund boom is directly benefiting the Wall Street firms that serve as prime brokers for the industry. Crossing Wall Street recaps the extraordinary earnings news coming from these firms. Undoubtedly the M&A fees derived from private equity transactions are also playing a role in these earnings.

Alec Magnet in the New York Sun reports that students at Harvard Business School are overwhelmingly seeking out jobs in the “alternative asset” industry, i.e. hedge funds, private equity and venture capital. The obvious question to ask is whether this rush is indicative of a top for these industries.