Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion mark at $3.017 trillion.
The primary reason for muted net inflows in July were
redemptions from credit strategies, which saw $2.4 billion
redeemed during the month, report data shows. Credit fund flows had been
positive in each of the last three months, however in a declining
trend.
Investor interest in equity exposure remained high in July and
has been positive in each of the last thirteen months dating
back to the interest rate spike in May/June 2013. The $8.3
billion of new inflows in July brings year to date totals to $74.0 billion,
by far the largest inflows for the group since 2007.
"The primary driver of new money coming into hedge funds
focused on equity markets has likely been a repositioning of
institutional assets away from traditional long-only US equity
strategies in search of flexible directional exposure to global
capital structure opportunities via hedge funds," writes Peter Laurelli, VP and Head of Research at eVestment, in the report
Macro strategies faced a second consecutive month of elevated
outflows in July with an estimated $2.5 billion redeemed. However investors have allocated new money to Europe focused funds and emerging markets. ...................... To view our full article Click here
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