Sun, Aug 14, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

New investments in hedge funds slow to a trickle

Thursday, March 24, 2016

Bailey McCann, Opalesque New York:

New investments in hedge funds slowed to a trickle in February coming in at $4.4 billion – with performance losses of $24.5 billion dropping overall industry AUM to $2.94 trillion, according to the just-released February 2016 eVestment Hedge Fund Asset Flows Report.

February has historically seen elevated flows into the industry. Over the prior six Februaries, from 2010 to 2015, investors added an average of $22.6 billion in net new capital to hedge funds, according to eVestment data. The dramatically reduced new investment into hedge funds this February reflects investor dissatisfaction with 2015 returns. While overall asset flows are a challenge for the industry, funds that performed well in 2015 have been the beneficiaries of investor interest so far in 2016. In the first two months of the year, hedge funds that posted gains of 5% or better in 2015 have received nearly $14 billion in allocations, while those with negative returns in 2015 have had $28 billion redeemed.

Despite all of this negativity, commodity strategies are seeing inflows again. February saw $1.8 billion, which was the largest in the current streak of six consecutive months of positive investor sentiment for commodity-focused hedge funds.

Fixed-income/credit focused hedge funds saw inflows of $2.5 billion in February, with larger funds being the primary beneficiaries. This represents a rebound for the strategies which had seen months of redemptions.......................

To view our full article Click here

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. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  2. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  3. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  4. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  5. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du