Tue, Jun 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund industry extends record asset level with 2Q inflows

Wednesday, July 20, 2011
Opalesque Industry Update - Investors continued to allocate new capital to hedge funds through and despite the volatile performance environment in 2Q11, as new allocations to the hedge fund industry totaled nearly $30 billion in 2Q11, according to data released today by HFR in the latest edition of Global Hedge Fund Industry Report: 2Q11. Inclusive of the $32 billion in inflows from the previous quarter, inflows in 1H11 exceeded $62 billion, the strongest half-year total since 2H07, when the industry saw $75 billion in inflows. Strong 2Q inflows offset a modest performance-based asset decline, and extended the record level of capital invested in the global hedge fund industry to $2.04 trillion.

Investors favor Macro, Relative Value and Quantitative strategies
Investors exhibited strong preference for Macro and Relative Value strategies in Q2, with these receiving over $20 billion of the new inflow. In terms of performance, Macro and Relative Value were at opposing ends of spectrum in 2Q, with the HFRI Macro Index posting a decline of -1.7 percent, while the HFRI Relative Value Index gained +0.76 percent.

Investors also indicated a clear preference for systematic, quantitative strategies with those receiving $10 billion in new capital across various sub-strategies, including Macro: Systematic Diversified. Equity Hedge strategies experienced inflows of only $1.7 billion in new capital in 2Q, bringing the YTD inflow total for Equity Hedge to $8.1 billion, the lowest of the four main strategy groups. After experiencing an inflow of $4.8 billion in 1Q, Fund of Funds saw a net withdrawal of $2.1 billion in 2Q; the HFRI Fund of Funds Index declined by -1.2 percent for the quarter.

After several quarters of moderating concentration, 2Q saw a reversal of this trend with the industry’s largest funds experienced a proportional increase in the new capital flows. Approximately two-thirds of the 2Q inflow went to firms with greater than $5 Billion in firm AUM; these funds manage approximately 62.4 percent of all industry capital. The overall percentage of funds which experienced inflows fell to 61 percent in 2Q from 71 percent in the prior quarter.

“Financial markets continue to be dominated by uncertainty and volatility, and investors are allocating to hedge funds, expecting and anticipating this uncertain environment to persist. The many catalysts in this environment, including the European sovereign debt crisis, the debate surrounding the U.S. debt ceiling, accelerating Asian inflation, fallout from bank stress tests, and mixed U.S. employment and housing statistics, suggest risk is changing faster and more dynamically than ever before,” said Kenneth J. Heinz, President of HFR. “Hedge fund investors are now more sophisticated than ever and are allocating to areas such as Macro, Relative Value and various quantitative strategies in anticipation of opportunities to be created by transition, volatility and risk.”

(press release)

About HFR
HFR Hedge Fund Research, Inc. is the global leader in the alternative investment industry. Established in 1992, HFR specializes in the areas of indexation and analysis of hedge funds. HFR Database, the most comprehensive resource available for hedge fund investors, includes fund-level detail on historical performance and assets, as well as firm characteristics on both the broadest and most influential hedge fund managers. HFR has developed the industry’s most detailed fund classification system, enabling granular and specific queries for relative performance measurement, peer group analysis and benchmarking. HFR produces over 100 indices of hedge fund performance ranging from industry-aggregate levels down to specific, niche areas of sub-strategy and regional investment focus. With performance dating back to 1990, the HFRI Fund Weighted Composite Index is the industry’s most widely used standard benchmark of hedge fund performance globally. The HFR suite of Analysis Products leverages the HFR Database to provide detailed, current, comprehensive and relevant aggregate reference points on all facets of the hedge fund industry. HFR also offers consulting services for clients seeking customized top-level or more nuanced analysis. For the hedge fund industry’s leading investors and hedge fund managers, Hedge Fund Research is The Institutional Standard.Source
km

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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,

  5. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t