In the first half of the year, the industry lured $12.64 billion, HFR showed. The positive net money inflow so far this year comes after investors redeemed $55.4 billion from funds last year.

HFR said capital flew to large hedge funds, those managing over $5 billion. Smaller firms experienced an outflow.

Equity hedge funds led the inflow in the second quarter of the year, adding $2.8 billion in new money, followed by event-driven funds.

The last six years have been challenging for hedge funds, with outflows surpassing inflows for most of the period.

Hedge funds ended June with $3.95 trillion in assets, up 1.8% from March. Growth was mainly driven by the funds' performance in the second quarter, HFR showed.

Hedge funds rose on average 2.15% in the last quarter and 3.4% in the first half of the year.

(Reporting by Carolina Mandl, in New York; Editing by Jonathan Oatis and Mike Harrison)