Fri, Nov 27, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Global hedge funds reach $1.81tln in April as assets grow by $52bn

Thursday, May 26, 2011
Opalesque Industry Update – Global hedge funds assets reached $1.81tln as at end April 2011, reaching its highest level since the financial crisis in 2007.

According to the latest report of hedge fund data provider Eurekahedge, hedge funds assets gained an additional $52.3bn in April, the tenth consecutive month of positive returns for the industry.

The Eurekahedge Hedge Fund Index posted a positive +1.58% gain in April, the report added. During the 10-month period, hedge funds returned 13.48%.

“Most regional hedge funds ended the month with positive returns while Japanese managers delivered downside protection and outperformed their underlying market indices. The industry attracted $28.33bn in net asset flows while performance based growth was $23.97bn,” Eurekahedge said.

Major findings of the report, includes data on net inflows during the first four months of the year which exceeded the total net flows for the whole of 2010 which amounted to $93.9bn compared to $66bn from April last year.

Other key highlights of the report are:

  • CTA/managed futures funds up 3.12% in April.
  • Funds of hedge funds see first quarter of net positive asset flows since 1Q 2008.
  • Asian hedge funds witness 12 consecutive months of net positive asset flows.
  • Long/short equity funds have attracted US$30.7 billion April YTD.
  • Launch activity remains strong with more than 200 funds launched so far in the year.
  • Assets in event driven hedge funds crossed US$200 billion mark (for the first time or to reach historical highs).
  • 43% of FoHFs investors are planning to increase allocations to event driven strategies over the next three months...
  • ...while 34% are planning to increase their exposure to Asia ex-Japan strategies.

Eurekahedge’s figures differ from the estimates given by independent hedge fund data tracker Hedge Fund Research, Inc., which showed that the hedge fund industry expanded to $20.2tln.

In its own estimate HFR added that while hedge funds assets reached a new high, the industry leveraged declined in the past months across all hedge fund strategies from 1.27 to 1.10 times investment capital, while average margin to equity also declined, falling from 17.13 to 16.98%, year over year.

HFR President Kenneth Heinz commented, “The hedge fund industry reached a new record level of capital in 1Q11 by offering investors performance driven by prudent use of leverage, transparency and inflation protection over the long term. The industry has evolved to suit the requirements of sophisticated investors as an integral component of their portfolio allocations as they position for growth and global inflation in 2011 and years to come.”
-Komfie Manalo

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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November