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Laxman Pai, Opalesque Asia: The total assets under management (AUM) of hedge funds globally surged to an all-time high of $4,146bn as of the end of Q1 2021.
According to a Preqin report, the strong return in Q1 2021 marked the best first-quarter performance since 2006 - the sixth-best first-quarter return ever recorded - and the third consecutive quarter of inflows.
"Investors allocated a further $10.93bn to the asset class, which, in tandem with the Preqin All-Strategies Hedge Fund benchmark return of +6.89%, generated a $150bn increase in AUM; a 3.8% increase since the end of 2020 overall," said the report.
Across strategies, CTAs experienced the highest quarterly net inflow ($5.80bn) contributing to its $293bn in AUM. Niche strategies followed very closely, with $5.75bn of inflows. Indeed, 67% of funds following the strategy experienced inflows, the highest proportion of any top-level strategy.
Only event-driven and macro strategies experienced withdrawals over the first three months of the year. Despite this, each strategy's AUM increased as performance offset outflows, said the report.
Meanwhile, North American fund managers received $19.79bn from investors in Q1 2021; a reversal of H2 2020 fortunes, when they suffered $54.69bn in net outflows. Asia Pacific-based managers were allocated $7.34bn, the only top-level region to experience inflows in 2020 as well as net positive numbers in Q1 2021.
According to Preqin, of niche strategies funds...................... To view our full article Click here
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