Sat, Dec 10, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds post $15.7bn inflows in March with investor favor moving toward emerging markets and fixed income

Monday, May 09, 2011
Opalesque Industry Update - The hedge fund industry posted an inflow of $15.7 billion (0.9% of assets) in March 2011, report BarclayHedge and TrimTabs Investment Research. The inflow marks the third straight as well as the seventh in eight months. Industry assets rose to $1.8 trillion, the highest level since October 2008.

“We expect recent strength to persist in light of a particularly kind landscape,” explains Sol Waksman, founder and President of BarclayHedge. “Seasonality works in favor of the industry through June, high commodity prices leave sovereign wealth funds with a lot of cash to invest, and returns have been strong. The Barclay Hedge Fund Index boasts a positive return in each of the seven months through March.”

Commodity trading advisors (CTAs) took in $6.0 billion (1.9% of assets) in March, the fourth straight inflow as well as the twelfth in 13 months, while funds of hedge funds took in $3.4 billion (0.6% of assets), the second straight inflow. Meanwhile, hedge fund investors are sticking with two long-time favorites. Emerging markets funds hauled in $3.4 billion (1.4% of assets), the eighth straight inflow, while fixed income funds took in $3.3 billion, the third straight inflow as well as the tenth in 11 months. These two strategies account for about half of all hedge fund inflows in 2011.

“The strength of flows into fixed income is remarkable,” notes Vincent Deluard, Executive Vice President of Research at TrimTabs. “Hedge funds investors and retail investors alike are keen on the space, while speculative traders and the Fed are buying Treasuries in size. Although many market participants expect interest rates to increase after QE2 closes at the end of June, prices have plenty of support at present.”

The TrimTabs/BarclayHedge Survey of Hedge Fund Managers for April reveals that 58% of managers do not expect the Fed to start tightening in 2011. Meanwhile, 23% of managers aim to lever up in the coming weeks even though they remain generally bearish on the S&P 500.

“Managers have been rather schizophrenic,” explains Deluard. “They are concerned that stock prices have climbed too far too fast, but many of them have exceeded their 2007 high-water marks and show no interest in deleveraging. Margin debt has been soaring for seven months in part because being able to borrow on the cheap to keep playing the momentum game is too great a temptation to resist.”

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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest