Komfie Manalo, Opalesque Asia: Hedge funds have seen further outflows in Q2 2016 following net outflows of $5.0bn in the second half of 2015 and outflows of $14.3bn in Q1 2016, data provider Preqin said in its latest Hedge Fund Spotlight. The net outflows in Q2 2016 were $19.9bn, taking total outflows over 2016 YTD (as of 30 June 2016) to $34.2bn.
The report also added that CTAs saw the highest net inflow of assets among all strategies in H1 2016 ($16.6bn), although this fell into the hands of a relatively small proportion (38%) of managers in this sector.
Preqin stated, "Despite posting some of the lowest returns of any hedge fund strategy in H1 2016, relative value strategies secured $10.4bn in net inflows over Q2 2016, the highest of any strategy in the quarter and negating the $8.7bn in outflows over Q1. Both credit and equity strategies have suffered over the first half of 2016, losing $26.2bn and $25.2bn in assets respectively, despite credit strategies recording some of the strongest returns."
The report said that funds that have performed well recently are more likely to pick up inflows. Forty-three percent of funds that made gains of 5% or more in 2015 have seen net inflows over the first half of 2016 – a higher level than funds that generated lower performance.
The four strategies rated by the largest proportion of institutional investors in hedge funds as meeting expectations in H1 2016 – systemati...................... To view our full article Click here
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