Mon, Jan 16, 2017
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. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  4. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock

  5. Eurekahedge Hedge Fund Index up 1.01% in December (+4.48% YTD)[more]

    Hedge funds gained 1.01% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as t