Thu, Jan 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds grab over $8bn in asset inflows in May, commodities heavily favored by investors

Monday, July 11, 2011
Opalesque Industry Update – Despite finding themselves mostly flat in performance this year, hedge funds took in $8.1bn in May, bringing YTD inflows to $75bn. However, the volatile markets of 2011 have still taken their toll and total industry assets remain unchanged at $1.79tln reports TrimTabs Investment Research and BarclayHedge.

“Hedge fund investors have been pouring money into funds,” explains Sol Waksman, founder and President of BarclayHedge. “The industry hauled in $75.0 billion in the first five months of 2011, which marks the heaviest such inflow since 2007. Performance, however, has hardly been stellar. The Barclay Hedge Fund Index shows a year-to-date return of just 2.1% through May, and many managers are in the red for the year.”

Fixed income funds have been standout performers this year (one example being the Barnegat Fund which has returned +12.% YTD – see previous story: here) and investors have rewarded them with net inflows 12 out of the past 13 months. “Additionally, bond mutual funds and ETFs, especially Treasury funds, are posting sizable inflows. We are interested to see how investors behave — and how fixed income managers perform — now that the Fed is no longer buying Treasuries,” says Minyi Chen, Vice President of Quantitative Research at Trim Tabs.

But the biggest winner in uncertain times remains commodities. CTAs garnered nearly half of the inflows in May ($4.5bn) the sixth straight month in a row that investors looked to gain additional exposure to commodities. But while commodities have been popular with investors, CTA funds have not managed to perform as well as strategies such as emerging markets and fixed income, and Chen urges caution regarding commodities strategies, especially due to the fact that these firms have seen some of the heaviest asset inflows.

Also reporting inflows in May were funds of hedge funds ($3.8bn) and multi strategy funds ($2.6bn).

Kirsten Bischoff

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. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  2. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  3. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalauMor Management in New York

  4. …And Finally - Prison restaurant is the best in Cardiff[more]

    From Orange.co.uk: A restaurant at a prison staffed entirely by inmates has been ranked as the best in Cardiff by diners. The Clink Restaurant at HMP Cardiff - which is open to the public - has been ranked number one on TripAdvisor out of 946 eateries in the Welsh capital. Diners who pos

  5. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report