Sat, Dec 14, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Nearly 45% of hedge funds see inflows, but October marks 8th consecutive month of industry outflows

Friday, November 22, 2019
Opalesque Industry Update - The balancing act of asset inflows and outflows worked against the hedge fund industry again in October, with investors redeeming $6.20 billion from the industry, according to the just-released October 2019 eVestment Hedge Fund Asset Flows Report.

While 45% of funds did experience inflows last month, the overall asset outflows in October marked the 8th consecutive month of outflows for the industry. The last time the industry experienced this many consecutive months of outflows began in Q3 2008 and persisted until April 2009.

Overall hedge fund industry AUM stood at $3.258 trillion in October, according to the new report.

Managed Futures funds turned around a string of investor redemptions from earlier this year beginning in August and brought in an additional $2.55 billion in new AUM in October, making these funds the big asset winners among primary strategies in October. That momentum hasn't been enough yet to turn around negative flows of -$6.78 billion year to date (YTD).

Other primary strategies that were in the green for asset flows in October were Relative Value Credit, Directional Credit, Event Driven and MBS Strategies, although all of these funds' inflows were below $1 billion, and in the case of MBS Strategies, barely positive at +$90 million.

Long/Short Equity funds saw continued large asset outflows in October at -$4.84 billion. 3Q 2019 Long/Short Equity outflows totaled -$15.10 billion and these funds have seen -$40.91 billion in outflows YTD.

Macro funds also saw big outflows in October, with -$2.68 billion fleeing these strategies in October and -$23.21 billion YTD.

The elevated redemption pressures facing Emerging Markets products in the last two months subsided a bit in October. This is not because redemptions broadly abated during the month, but more because some new allocations were made to China equity products and global EM credit.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. 50 South Capital & Preqin highlight emerging manager outperformance in a new report[more]

    Bailey McCann, Opalesque New York for New Managers: New data from Preqin and 50 South Capital, the investment arm of Northern Trust, shows that emerging managers are outperforming established managers by almost 4% a

  2. An academic wrecking ball aims at hedge funds[more]

    From Bloomberg: Quant investing, and indeed much of the hedge fund industry, is built on the power and freedom that come with the ability to sell short. When you short a security (borrow and then sell it, meaning you make money if the price falls and you then re-buy it), you can profit when markets

  3. PE/VC: Private equity buys $101bn of European businesses, 30 under 30 venture capital 2020: Meet the young investors backing tech's next big thing[more]

    Private equity buys $101bn of European businesses From Bloomberg: European equities' cheap valuations have turned the region into a honeypot for private-equity and arbitrage funds looking to reap double-digit returns. With the buyout firms enjoying a massive amount of dry powder, especial

  4. PE/VC: The truth about private equity fund size, US VC investment in female founders hits all-time high[more]

    The truth about private equity fund size From Institutional Investor: As the end of the year approaches, institutional investors in private markets are wrapping up work on the last few funds we need to invest in to hit our targeted annual commitment levels. You see, private equity

  5. Crypto: Almost 70 crypto hedge funds have closed this year as institutional investors shy away, Central bank talk of launching cryptocurrencies is all bluff, Thailand and Hong Kong in crypto collaboration with cross border token project, Crypto loans see solid growth, platforms attract community interest, A Bitcoiner in the Senate? Is Bakkt CEO in US govt. good or bad for crypto?, Bank of France to test digital currency in 2020[more]

    Almost 70 crypto hedge funds have closed this year as institutional investors shy away From The Block Crypto: Nearly 70 crypto-focused hedge funds that largely cater to institutional investors, such as pension funds and family offices, have closed this year. The number of new fund