Morgan Stanley, Goldman Sachs Group Inc. and other global investment banks benefited a record $25 billion last year from business with hedge funds, according to the data provided by Credit Suisse First Boston.

This revenue made up about one-eighth of the securities industry’s total and rose almost 20 percent compared with 2003, said CSFB analyst Marc Rubinstein.

``Hedge funds are one of the key sources of growth for investment banks and the expectation is that revenue will continue to climb,’’ said Rubinstein in an interview with Bloomberg.

According to Chicago-based consultant Hedge Fund Research Inc., global hedge fund assets have increased to almost $1 trillion from $38 billion in 1990. Following the stocks decline after March 2000, millionaires made investments in hedge funds to earn profits.

About $19 billion of last year’s revenue from hedge funds came from sales and trading, and the balance was a consequence of so- called prime brokerage, according to CSFB’s report about the industry issued on March 9.

Hedge funds are making 50 percent of the daily trading on the New York and London stock exchanges, and more than 70 percent of the trading in convertible bonds, said Rubinstein.

Average daily trading in the foreign-exchange markets rose 57 percent in the three years in April 2004, mainly because of hedge funds, according to the statistics provided by the Bank for International Settlements in Basel, Switzerland.