The hedge fund industry attracted its largest inflows in seven years during the first quarter as investors sought downside protection amidst a volatility spike triggered by fears of inflation and rising rates as well as geopolitical tensions. The $4-trilion community saw total capital inflows of $19.8 billion during the first three months of 2022, the highest quarterly inflow since the second quarter of 2015, according to hedge fund data firm HFR. The big interest in hedge funds came as the bull market was threatened by the Federal Reserve's aggressive tightening, Russia's invasion of Ukraine as well as shocking 40-year-high inflation.