Mon, Oct 26, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

July sees second straight month of hedge fund inflows

Wednesday, September 23, 2020
Opalesque Industry Update - Hedge funds experienced a second straight month of inflows in July, bringing in $10.5 billion as the industry continued to shake off spring's pandemic-driven redemption trend. July's new assets built on June's $15.1 billion in inflows.

July's inflows represented 0.3% of industry assets, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions.

With a $32.1 billion trading profit in July, total hedge funds industry assets stood at nearly $3.26 trillion as July ended, up from $3.11 trillion a month earlier.

Data from 6,900 funds (excluding CTAs) in the BarclayHedge database showed Balanced (Stocks & Bonds) funds leading the way in bringing in new assets, adding $6.7 billion in July.

"Investors clearly took comfort in the rebound in equity markets as the spring months progressed," said Sol Waksman, president of BarclayHedge. "Meanwhile, the pace of economic recovery in regions that were first to suffer the impacts of the COVID-19 pandemic was reflected in regional fund inflows."

Over the 12-month period through July the hedge fund industry experienced $150.9 billion in redemptions. The industry posted a $32.1 billion trading profit through July, which, along with June and July inflows, brought total industry assets to nearly $3.26 trillion, an increase from $3.11 trillion at the end of June and up from $3.12 trillion a year earlier.

There was a new addition to the fund sectors posting 12-month inflows in July with Balanced (Stocks & Bonds) funds joining the mix. Sector Specific funds led the way adding $20.5 billion over the period, 11.8% of assets, Event Driven funds brought in $18.1 billion, 10.8% of assets, Balanced (Stocks & Bonds) saw inflows of $5.4 billion, 1.6% of assets, Convertible Arbitrage funds added $3.6 billion, 17.6% of assets, and Emerging Markets - Latin America funds brought in $653.6 million, 4.9% of assets.

Hedge fund sectors with the largest 12-month redemptions included Fixed Income funds with $45.0 billion in redemptions, 7.0% of assets, Equity Long/Short funds shedding $35.4 billion, 17.5% of assets, and Equity Long Bias funds experiencing $24.1 billion in outflows, 7.1% of assets.

Managed futures funds returned to inflows in July adding $7.2 billion with all four CTA sectors tracked experiencing net inflows for the month. A $3.7 billion trading profit in July brought total industry assets to $296.7 billion as the month ended, up from $283.1 billion at the end of June.

CTA funds in the U.S. and the U.K. played the lead roles in the managed futures industry's July inflow performance with U.S. funds adding nearly $3.7 billion during the month, 2.1% of assets, while funds in the U.K. and its offshore islands brought in $3.3 billion, 5.2% of assets.

On the redemption side of the ledger, managed futures funds in Continental Europe experienced $102.0 million in redemptions, 0.3% of assets, and CTAs in Asia excluding China and Japan shed $15.4 million, 0.2% of assets.

For the 12 months through July, the managed futures industry experienced redemptions of $13.8 billion, 4.2% of industry assets. A $14.4 billion trading loss over the period contributed to the industry's $283.1 billion total asset figure as July ended, down from $327.3 billion a year earlier.

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. PE/VC: Coronavirus triggers borrowing spree by private equity managers, Venture capital investments reach new high in Brazil, Private-equity giants are racing to sell assets before year-end[more]

    Coronavirus triggers borrowing spree by private equity managers From FT: Private equity managers are turning to specialist borrowing facilities to ensure their highly leveraged strategies can survive the coronavirus pandemic, but there are growing concerns that the use of these complex f

  2. What's behind Viking's strong gains[more]

    From Institutional Investor: Viking Global Investors had strong performance in its three main funds in the third quarter, bringing gains for the year into the mid-to-upper teens. The Tiger Cub hedge fund firm, co-founded by O. Andreas Halvorsen, is far outperforming the broad-market averages a

  3. PE/VC: A record number of private equity funds are in the market - but closing them won't be easy, PE firms must be prepared to face challenges across each fund vintage, Wall Street is helping private equity recycle its old assets[more]

    A record number of private equity funds are in the market - but closing them won't be easy From Institutional Investor: Although there are a record number of private equity funds in the market, they are raising money at a slower pace, delaying fund closes, according to new data from Pre

  4. SPACs: Hedge funds scoop up SPAC shares, Hedge funds surface in wave of Biopharma SPAC deals, SPAC to the future: How blank-check acquirers could reshape emerging companies' roles in public markets[more]

    Hedge funds scoop up SPAC shares From Institutional Investor: Hedge funds aren't just launching their own special purpose acquisition companies -they're also scooping up shares of these blank-check companies. Basso and Difesa have cashed in on the boom in blank-check companies. Firm

  5. Opalesque Exclusive: A.W. Jones emerging manager fund of funds passes three year milestone, up +12.61% through August[more]

    Bailey McCann, Opalesque New York for New Managers: An emerging manager fund of funds from A.W. Jones has just passed its three-year milestone and is outperforming so far this year. The fund was up 3.29% in August a