Thu, Jan 19, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund performance improves slightly, inflows $852m in May

Tuesday, July 10, 2012
Opalesque Industry Update: BarclayHedge and TrimTabs Investment Research reported today that the hedge fund industry took in a lackluster $852 million (0.05% of assets) in May, but that was an improvement over April’s net outflows of $3.2 billion. Based on data from 3,001 funds, the May TrimTabs/BarclayHedge Hedge Fund Flow Report estimated that the hedge fund industry assets stood at $1.72 trillion in May, down 2.0% from $1.76 trillion in April and down 29% from the peak of $2.4 trillion set in June 2008.

“The small inflows of May did not really buck the larger hedge fund industry trend of meager returns, flat asset growth, and net outflows over the past year,” said Sol Waksman, founder and president of BarclayHedge. Outflows from the industry totaled $18.8 billion from June 2011 to May 2012, compared to inflows of $96.2 billion for the previous 12 months while assets hovered around $1.7 trillion for the past nine months.

For the second month in a row, the hedge fund industry outperformed the benchmark S&P 500, but it still remained on the loss side. While the S&P Index fell 6.27% in May, the hedge fund industry had losses of 3.05%. For the first five months of 2012, however, the industry underperformed with a 1.8% return vs. a 4.2% gain for the S&P 500.

Waksman noted, “Hedge funds have underperformed the S&P500 on a trailing three-year basis for the past seven months, so the next several months will be telling in terms of whether the industry can get back to delivering sizable returns to its customers.”

Among the major hedge fund categories, Fixed Income funds have had the highest inflows and the best returns over the past year. “Fixed Income is in demand because low interest rates and easy monetary policies from central bankers have driven yields to record lows,” said Charles Biderman, founder and CEO of TrimTabs, who noted that Multi Strategy and Macro funds are also attracting investors because they can capitalize on political and financial turmoil like the Eurozone sovereign debt crisis.

Reflecting the debt crisis that has pummeled Greece and Spain, hedge funds based in Continental Europe lost 7.0% of assets in May and 25.5% of assets from June 2011 to May 2012. “We believe investors are looking to minimize their exposure to Europe and European financing while reallocating their assets to geographical regions they believe will benefit from a more stable financial system and currency,” said Leon Mirochnik, vice president at TrimTabs. Japan-based hedge funds were investor favorites, taking in the largest inflows among global regions for the past year (20.1% of assets) even as they generated some of the worst returns (-8.2%).

Meanwhile, the latest June 2012 TrimTabs/BarclayHedge Survey of Hedge Fund Managers found that 26.5% of managers were bullish on the S&P 500 for July, while 33.7% were bearish and 38.9% were neutral. Conducted in late June, the survey of 99 hedge fund managers found bullishness in terms of the S&P 500 at a 10-month low, while neutral sentiment climbed to just short of a 12-month high.

BarclayHedge

Press Release

BM

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. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  2. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  3. Short Selling - Long-short hedge funds are ditching the shorts to focus on longs[more]

    From Bloomberg.com: What happens when you take the "short" out of a long-short trading strategy? Some hedge funds are about to find out. Equity long-short fund managers, the biggest category in hedge funds, hold the fewest bearish stock bets on record, data compiled by Credit Suisse Group AG s

  4. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  5. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee