Fri, Apr 29, 2016
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Performance - Blackstone profits plunge 77% as performance fees dive, Hedge fund stars' fortunes hostage to market swings, Hedge fund manager goes from billionaire to millionaire in profits plunge, Hedge funds biggest losers in SunEdison's 'magic money machine'[more]

    Blackstone profits plunge 77% as performance fees dive From FT.com: Blackstone, the world’s biggest manager of alternative investments from private equity to real estate, suffered from sharply lower performance fees amid turbulent markets in the first three months of the year, even as it

  3. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  4. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  5. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the