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Hedge funds redeem scant $40 Million in July and outperform S&P 500

Wednesday, September 10, 2014
Opalesque Industry Update - BarclayHedge and TrimTabs Investment Research reported today that the hedge fund industry redeemed a scant $40 million in July, the first monthly outflow of the year, after taking in $5.1 billion (0.2% of assets) in June.

“While hedge fund flows were essentially flat in July, inflows in the first seven months of the year totaled $80.1 billion, the highest inflows from January through July since 2007,” said Sol Waksman, president and founder of BarclayHedge. The industry took in $35.0 billion in the same period in 2013.

Industry assets rose to a six-year high of $2.33 trillion in July, according to estimates based on data from 3,468 funds. Assets climbed 18.0% in the past 12 months but were down 4.5% from the all-time high of $2.4 trillion in June 2008.

The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry lost 0.5% in July. While this performance was the lowest in the past 11 months, it was better than the S&P 500’s 1.5% loss. In the past 12 months, hedge funds returned 8.4%, while the S&P 500 gained 16.9%.

“Emerging Markets funds delivered the best returns in July, rising 0.7% and outperforming all other fund categories, but they also had the month’s largest outflows, redeeming $1.9 billion,” said Waksman.

BarclayHedge

Press Release

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