Fri, Jul 19, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund assets under management reaches $3.56tn as of the end of Q1 2019

Thursday, July 11, 2019

Laxman Pai, Opalesque Asia:

After poor performance towards the end of 2018, investors have largely been reticent in their hedge fund investment, recording total industry withdrawals of $22.1bn in Q1 2019, Preqin said in its Insights.

The recent performance gains in 2019, however, have driven hedge fund assets under management (AUM) from $3.45tn in Q4 2018 to $3.56tn as of the end of Q1 2019, it pointed out.

Traditional markets have experienced a reversal of fortune in 2019. Following on from a turbulent end to 2018, the S&P 500 Index has gained 600 points to reach a record high as of 3 July 2019. These trends can be attributed to various macroeconomic factors and movements in the business cycle.

Ibrahim Mir of Preqin analysed how has this impacted hedge funds? Perhaps the most stated characteristic of hedge funds is their low correlation to traditional markets. However, for hedge funds that employ an equity strategy, this characteristic is often overstated.

Equity strategies hedge funds have a strong degree of correlation to traditional markets, illustrated by a three-year trailing correlation of 0.90, he said.

Equity strategies make strides

According to Preqin, equity strategies have been the best performing top-level hedge fund strategy for 2019 YTD, making gains of 6.88%, with particularly strong gains in developed markets.

North America-focused hedge funds are up 8.03% since the start of the year. At the same time, Europe-fo......................

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. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from