Fri, Oct 23, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Billions flow into hedge funds in August, nearly 60% of funds see new money

Thursday, September 24, 2020
Opalesque Industry Update - After a four-month string of asset outflows from hedge funds in March through June, hedge funds continued in asset-recovery mode in August, with investors adding $7.36 billion to the industry last month, according to the just-released August 2020 eVestment Hedge Fund Asset Flows Report. This follows on more than $9 billion added to hedge funds in July.

Year to date (YTD) the industry is still deeply in the red, with investors pulling some $37.59 billion from hedge funds so far this year. Overall industry AUM stands at $3.197 trillion.

eVestment Global of Research Peter Laurelli, the report's author, notes the volume of asset flows was light in August, but well disbursed, with a majority of the funds eVestment tracks seeing asset inflows.

"August was generally a broadly positive month for the hedge fund industry, though there were pockets of large redemptions clouding the picture," said Laurelli. "The proportion of funds with inflows was nearly 60%, which would make August 2020 the second most broadly positive month for hedge fund asset flows in the past five years."

Among major fund types, Fixed Income/Credit funds were big asset winners, pulling in +$2.97 billion in August, although these fund are still down -$6.36 billion YTD. Commodities funds were up +$1.47 billion in August and are up +$3.50 billion for the year.

Among the primary hedge fund strategies eVestment tracks, Macro funds saw the most new money in August, pulling in +$2.84 billion. These funds have a lot of ground to make up, however, as they are down -$13.26 billion YTD, on top of -$20.60 billion investors pulled from Macro funds in 2019.

Event Driven hedge funds are continuing a long-running winning streak. These funds saw +$1.75 billion in new investor money in August and are up YTD +$6.21 billion. This adds to just over +$11 billion investors added to Event Driven funds in 2019.

On the other hand, Long/Short Equity funds continued a long-running losing streak in August. Investors pulled -$1.88 billion from these funds in August, bringing YTD investor redemptions to -$12.36 billion. This is on top of a massive -$44.49 billion investors pulled from these funds in 2019 and a less dramatic but still meaningful -$10.74 billion investors pulled from Long/Short Equity funds in 2018.

While Multi-Strategy funds were just barely negative for flows in August, with investors pulling -$360 million from this sector, those outflows were highly concentrated in August and the majority of Multi-Strategy funds appeared to have inflows during the month.

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. Franklin Templeton creates new unit with QS Investors[more]

    Laxman Pai, Opalesque Asia: Franklin Templeton will combine recently acquired QS Investors, a Legg Mason subsidiary, with Franklin Templeton Multiasset Solutions (FTMAS) business into a single consolidated unit. Effective Oct. 1, the combined business, called Franklin Templeton Investment Sol

  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