The influx of new funding represents an increase of close to 300 per cent from the fourth quarter of 2006, during which period $15.7 billion of new money was invested.
With the extra first-quarter investment total assets under management by hedge funds now stands at $1.57 trillion.
The best performing sectors within the industry were equity hedge, which attracted investment of $20.4 billion, and relative value arbitrage, with an inflow of $10.3 billion.
Market analysts now perceive that the dip evident in the sector in late 2006 was an aberration linked to the collapse of Amaranth Advisors.
Commenting on the results, Marina Lewin, managing director of Bank of New York, said that investors are turning to hedge funds in the wake of below-par returns for the big investment banks.
"They're looking at the long- term potential from the risk perspective, and also out of concern that traditional asset classes aren't meeting their needs," she said.
It was also revealed that the average first-quarter gain for hedge funds stood at 2.81 per cent.