Opalesque Industry Update - BarclayHedge and TrimTabs Investment Research report that hedge funds took in a net $817 million (0.04% of assets) in March, building on an inflow of $11.4 billion in February. The results are based on data from 3,409 funds.|
“The hedge fund industry continues to struggle with performance relative to the S&P 500,” said Sol Waksman, president and founder of BarclayHedge. “The industry delivered a return of 1.1% in March, less than one-third of the S&P 500’s 3.6% rise. Although hedge funds delivered positive returns in 10 of the past 12 months, they trailed the S&P 500 by 450 basis points."
The TrimTabs/BarclayHedge Hedge Fund Flow Report noted that stock-picking hedge fund managers performed well in March, just as they did in the first two months of this year.
“Equity Long Only hedge funds rose 3.3% in March, making them the best performing of 13 major fund categories,” said Waksman. “Fixed Income and Multi Strategy were the only strategies that posted inflows in the past 12 months."
Funds of hedge funds continued to shed assets, losing $2.6 billion in February and $53.2 billion in the past 12 months. They underperformed the hedge fund industry by 230 basis points in the past 12 months.
The latest TrimTabs/BarclayHedge Survey of Hedge Fund Managers found managers are worried about the stock market’s prospects for May. Opinions on 10-year Treasuries and several other indicators suggest hedge fund managers are bearish.