Thu, Aug 22, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds continue to see asset outflows in October, YTD outflows at $77m

Monday, November 21, 2016
Opalesque Industry Update - The breadth of hedge fund asset outflows in October was the industries’ largest in 2016, with 61% of reporting funds seeing net outflows for the month, according to the just-released eVestment October 2016 Hedge Fund Asset Flows Report. October’s -$14.2 billion outflow marked the fourth month of redemptions in the last five, with year to date (YTD) hedge fund assets down -$77 billion.

Overall industry AUM is getting dangerously close to dropping below $3 trillion. Industry assets now stand at $3.03 trillion now following this string of disappointing months for hedge funds.

Event driven funds took the biggest hit among major strategies, with -$4.49 billion in flows in October, bringing YTD flows to -$38.22 billion, almost double the -$19.38 billion event driving funds lost in 2015.

Some other interesting points from the new report, according to eVestment Vice President and Global Head of Research Peter Laurelli, include:

·What bright spots the industry saw among major strategies appeared among distressed and broad multi-strategy funds, which had positive flows of $580 million and $550 million respectively.

·Following the big outflows in event driven funds, long/short equity funds and relative value credit funds saw big outflows in October, with -$3.41 billion and -$3.20 billion respectively.

·The outlook for macro hedge funds may actually be positive, despite October being the tenth monthly net outflow for the universe within the last year. Eight consecutive months of positive asset-weighted performance, against the backdrop of a rapidly evolving macro economic landscape could be positive for flows.

·Managed futures funds, which had been largely positive so far this year, took a turn to the negative in October, with -$1.63 billion in flows. The strategy is still positive for the year, however, with $19.31 billion in flows as of October, compared to $13.43 billion in flows for all of 2015.

·Flow trends were negative across all major geographies, with funds focused on the America’s seeing the largest outflows at -$7.67 billion.

·Interest in emerging markets exposure, which had been a ray of hope for one segment of the industry, fizzled in October, with the segment seeing out flows of -$1.98 billion.

Hedge funds are facing difficult times, but the $3 trillion industry is not on the verge of disappearing. The issues of expensive access to increasingly marginalized and potentially replicable returns streams has and will continue to force change.

Savvy institutional investors have more choices, more technology and more influence on their side than ever before. And while industry surveys point to institutional investors increasingly interested in alternative investment vehicles, current industry trends may point to rising interest in private markets as opposed to hedge funds for institutional investors looking for alternative exposures.

The full report can be downloaded here:

Article source - Opalesque is not responsible for the content of external internet sites

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. 6 out of 10 investors seek to move assets from UK amid brewing of perfect storm[more]

    Opalesque Industry Update - Six out of 10 investors are now actively seeking to move assets out of Britain as a perfect storm looks set to hit the UK economy, reveals a new poll. The survey of more than 740 clients carried out by deVere Group, one of the world's largest independent financial

  2. Investing: Hedge funds take record short bets against Aston Martin, Investor sentiment reaching reversal point, says Lipper,It's time to buy into this long-suffering strategy, Investors, 'starved for returns,' flood private markets in search of high-growth opportunities[more]

    Hedge funds take record short bets against Aston Martin From FT: Hedge funds have taken record short positions in the debt and equity of Aston Martin, betting that the luxury carmaker will continue to struggle after one of the most disastrous stock market debuts of recent years.

  3. Crayhill Capital Management closes $100M transportation financing in Mexico[more]

    Bailey McCann, Opalesque New York: Private credit shop Crayhill Capital Management is providing a senior secured credit facility of up to $100 million to Mutuo Financiera, a vehicle fleet leasing company focused on clean energy passenger transportation in Mexico. Crayhill Capital Management is l

  4. People: Swedish AM hires long/short equity veteran, Cambridge University recruits new CIO from family office[more]

    Swedish AM hires long/short equity veteran From City Wire: Swedish asset manager Catella has hired Mattias Nilsson as a new portfolio manager to focus on long/short investing, the firm has announced. Nilsson will start on 26 August and will be part of the firm's long/short equity capabi

  5. Tech: European Central Bank confirms website hack and data breach, Google warns BILLIONS of website passwords have been hacked - how to check yours now, Jeffrey Tarrant saw artificial intelligence as the future of managing money[more]

    European Central Bank confirms website hack and data breach The European Central Bank (ECB), the central bank of the 19 European countries which have adopted the euro, has shut down a compromised website after it discovered that hackers had planted malware that stole information from ne