Tue, Feb 20, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds haul in $34.9bn in February, heaviest inflows on record equity strategies 'wildly popular'

Monday, April 11, 2011

Vincent Deluard
Opalesque Industry Update - The hedge fund industry raked in $34.9 billion (2.0% of assets) in February 2011, the heaviest inflow on record, reports BarclayHedge and TrimTabs Investment Research. Industry assets stand at $1.73 trillion, the highest level since October 2008.

“Flows are doubtless following performance,” explains Sol Waksman, founder and President of BarclayHedge. “The Barclay Hedge Fund Index posted an increase in each of the past seven months, and it didn’t hurt that February is historically the best month of the year for new hedge fund subscriptions. Meanwhile, public pension plans — many of which are underfunded — are devoting much more capital to the hedge fund space.”

Meanwhile, the record inflow in February might bode ill for the performance of hedge funds in the next year. The increase in the Barclay Hedge Fund Index in the 12 months following an inflow of $25+ billion averages just 2.6%. In contrast, the average increase in returns in the 12 months prior to a $25+ billion inflow clocks in at a handsome 14.2%.

“Investors of all stripes tend to chase fat returns, and investment vehicles of all kinds tend to perform relatively poorly once everyone under the sun is enamored of them,” explains Vincent Deluard, Executive Vice President of Research at TrimTabs. “Inflows are historically heaviest when asset prices are dear, while some strategies constrain managers. There are only a handful of deals on which a merger arbitrage fund can capitalize.”

Funds of hedge funds hauled in $7.3 billion (1.3% of assets) in February, the heaviest inflow since March 2008, while commodity trading advisors (CTAs) raked in $7.5 billion (2.5% of assets), the heaviest inflow since June 2009. Meanwhile, hedge fund investors are exhibiting a stronger appetite for risk. All six equity hedge fund strategies received assets in February.

“Competitive currency depreciations, soaring commodity prices, disasters in Japan, revolution and war in the Middle East, and debt crises in Europe make for a tragic and bearish landscape,” notes Deluard. “Market participants nonetheless keep peppering equities with cash, and that might explain why market corrections have proven so shallow and brief.”

The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Hedge Fund Flow Report provides detailed analysis of these flows as well as relevant topical studies. Click here for further information.

(press release)

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Chenavari, a $5.4bn hedge fund, told investors it thinks 'we could experience a similar pattern as the 1987 crash'[more]

    From Businessinsider.com: A $5.4 billion hedge fund told clients markets could tumble just like they did in the 1987 crash. In a February 14 letter to clients, London-based Chenavari Investment Managers warned about current market conditions. From the letter (emphasis added): "Our view is that

  2. Investing - Hedge fund Bridgewater makes $22 billion bet against European firms, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter, Tepper's Appaloosa boosts Apple, Facebook as others bolt, Third Point buys Netflix and MGM, dumps Bank of America, Moore Capital bought Wynn Resorts, other casino stocks before Steve Wynn resigned[more]

    Hedge fund Bridgewater makes $22 billion bet against European firms From Reuters/USNews.com: Bridgewater has shown its hand in Europe with a $22 billion bet against some of the continent's biggest companies, filings reviewed by Reuters show, part of a bigger shift by the world's largest

  3. Funds Profiles - Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed, How a 6,000% profit on a single trade saved a small hedge fund from disaster[more]

    Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed From Valuewalk.com: When Jeremy and Michael Kahan consider the notion of diversification, the wince. With a return of 45.8% to end 2017, their stock-picking fund, North Peak Capital, successfully

  4. Investing - Hedge funds hook shipping stocks grappling for recovery, Small cap hedge funds offer alternative for cannabis investing, Top stock-picking hedge funds love gaming, health care and media shares, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter[more]

    Hedge funds hook shipping stocks grappling for recovery From Hellenicshippingnews.com: Shipping stocks may still be in the doldrums in the view of many investors, but hedge funds have bet at least $675 million on signs of renewed buoyancy in the industry. Hedge funds made initial f

  5. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu