Wed, Sep 22, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds total redemptions reduced from $47.7bn in Q1 to $15.6bn in Q2

Monday, August 31, 2020

Laxman Pai, Opalesque Asia:

Hedge fund assets under management (AUM) have risen in the second quarter of 2020, said Preqin. In a Q1 2020 rocked by poor performance and significant investor redemptions, industry AUM dipped below $3.5tn for the first time since Q4 2018.

Fast-forward three months and AUM have returned above this threshold to stand at $3.58tn, after a recovery in performance in Q2 (+11.48%) offset Q1's net outflows.

According to the report, total redemptions reduced from $47.7bn in Q1 to $15.6bn in Q2, a big improvement. Despite this, the hedge fund industry AUM remains 2.1% below the level at which it started the year.

With markets arguably becoming increasingly disconnected from fundamentals, timing the market has become more of a challenge for some managers.

At $3.9bn and $3.3bn respectively, relative value and multi-strategy were the only top-level strategies tracked by Preqin to achieve positive capital inflows during Q2.

Relative value strategies' ability to bet on market divergences without having to make directional market bets may have proved advantageous. The long/short nature of these trades can result in an inherent lack of net market exposure.

In contrast, event-driven strategies were hardest hit by investor redemptions, with $6.4bn withdrawn. In total, $14.7bn has been withdrawn from event-driven strategies during H1 2020, leaving AUM at $162.7bn.

These strategies are heavily dependent on the trading opportunities that c......................

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. PE/VC: Private equity GPs, LPs alike working on diversity and inclusion, Chinese regulator vows to crack down on private equity, venture capital funds, The VC playbook for portfolio companies: learning from the Covid-19 crisis[more]

    Private equity GPs, LPs alike working on diversity and inclusion From PIonline.com: Private equity general partners and limited partners are doing more to increase diversity in private markets, according to a report released Tuesday by the Institutional Limited Partners Association.

  2. PE/VC: Private equity continues to lead fund closings, Venture capital firms are fighting to throw money at cleantech[more]

    Private equity continues to lead fund closings From PIonline.com: Among private fund closings, private equity funds have led the pack starting in 2011, based on data collected by Pensions & Investments. During those years, private equity's share has ranged from 56% to 72% of the total

  3. PE/VC: Climate tech is hot, but VCs can't forget about water, Five top trusts to tap into the private equity boom[more]

    Climate tech is hot, but VCs can't forget about water From Crunch Base: "It is unequivocal that human influence has warmed the atmosphere, oceans, and land." These fiery words come from the latest landmark U.N. report detailing intensifying, universal climate change impacts. They cover

  4. New Launches: H.I.G. closes first European buyout fund at $2.4bn, Cheyne Capital raises another $1.18bn credit fund to invest in struggling European companies, Falfurrias Capital Partners raises $850m in oversubscribed fund, Alan Howard-backed 10T raises $750m for debut crypto fund, Crayhill Capital strikes $820m hard cap close for second credit-focused fundraise, Edmond de Rothschild's Eres IV eyes second close in H1 2022, Revaia closes Europe's largest female-founded VC fund, Octopus unveils UK Future Generations sustainable fund, TrueBridge Capital Partners closes seed & micro-VC fund I, at $170m, Federated Hermes launches low-carbon bond fund with Swedish partner[more]

    H.I.G. closes first European buyout fund at $2.4bn From PIonline.com: H.I.G. Capital closed its first European middle-market buyout fund, the H.I.G. Europe Middle Market LBO Fund, at €2 billion ($2.4 billion), a news release shows. The fund targets middle-market companies prim

  5. U.S.: Peter Thiel gamed Silicon Valley, Donald Trump, and democracy to make billions, tax-free[more]

    From Bloomberg: The meeting started with a thank-you. President-elect Donald Trump was planted at a long table on the 25th floor of his Manhattan tower. Trump sat dead center, per custom, and, also per custom, looked deeply satisfied with himself. He was joined by his usual coterie of lackeys