Opalesque Industry Update - BarclayHedge and TrimTabs Investment Research reported today that hedge funds took in $17.5 billion (0.9% of assets) in November, 2013. This inflow was the highest in six months and the second-highest in the past two years.|
“The hedge fund industry has taken in a net $66.9 billion in 2013, a healthy turnaround from an outflow of $8.2 billion in the same period in 2012,” said Sol Waksman, president and founder of BarclayHedge. Hedge funds had net inflows in nine of the first 11 months of 2013.
Industry assets climbed to a five-year high of $2.1 trillion.
“Assets are up 17% in 2013 but are still 14% below the all-time peak of $2.4 trillion in June 2008,” Waksman said.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report said the industry gained 0.8% in November, underperforming the S&P 500, which gained 3.1%. Equity Long Only hedge funds gained 2.3%, adding to October’s 1.9% gain. Equity Long Bias funds gained 1.6%, down from a 2.3% gain in October.
Funds of hedge funds took in $1.9 billion (0.4% of assets) in November, reversing course after redeeming $1.1 billion October. Funds of funds added assets in just three of the past 24 months. By contrast, the hedge fund industry posted inflows in 15 of the past 24 months.
Meanwhile, the monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds a plurality of managers is bullish on the S&P 500’s prospects for January. Bearish sentiment is at a three-month high, while bullish sentiment is at a three-month low. Nearly two-thirds of respondents expect equities to outperform bonds and precious metals over the next six months, and a similar proportion expects developed markets to outpace emerging and frontier markets in the same period.
The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Survey of Hedge Fund Managers appears monthly, as does the TrimTabs/BarclayHedge Hedge Fund Flow Report, which provides detailed analysis of hedge fund flows, assets, and returns. For further information, please visit www.barclayhedge.com/products/trimtabs-hedge-fund-flow-report.html
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