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Bailey McCann, Opalesque New York: In Q1, the majority of large funds experienced inflows, while the majority of medium and smaller funds experienced net redemptions according to new data from eVestment Alliance, a global investment advisory firm. Hedge fund performance was mixed In April with average returns down -0.29% for the month after one of the best quarters on record. Overall funds outperformed the S&P 500 Total Return which was down -0.63%.
Overall industry net flows were flat in April, large funds were the only group whose net flows in April were positive, medium and small fund net investor outflows were both negative, offsetting large fund inflows. More than half of funds with emerging markets exposure saw negative returns as did those with Exposure to the commodities markets. Credit strategies continued to perform best, a trend that continued from Q1.
Investors remain cautious about US equities markets despite a generally more positive quarter. The shift of assets from underperforming funds into funds which performed well during 2011 continued into April, 58% of all funds which were positive in 2011 had net inflows whereas only 33% of funds with negative performance in 2011 had net outflows in April.
There is a clear lack of conviction for long biased equity exposure, even towards emerging markets, despite the high expectations towards the end of 2011 that the appetite for these exposures would increase. Concern appears to remain high towards dedic...................... To view our full article Click here
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