Thu, Oct 23, 2014
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   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t