Opalesque Industry Update - Preqin’s latest on asset flows in the hedge fund industry finds that across the first three quarters of 2016 assets held
by hedge fund managers increased by 2.9%, taking total industry AUM to $3.24tn. Across most strategies, strong
returns have been the central driver of asset growth, with the industry posting gains of 5.44% through Q1-Q3 2016.
Strong performance for equity and macro strategies funds overcame net investor redemptions to see their AUM grow
in the first three quarters of the year, while credit, relative value and multi-strategy funds all saw their total assets fall.
By contrast, though, CTAs have seen net inflows of $27bn in 2016 YTD, growing the strategy’s AUM by 13.5% to
reach $253bn despite only making gains of 0.97% across the first three quarters. Preqin’s latest on asset flows in the hedge fund industry finds that across the first three quarters of 2016 assets held by hedge fund managers increased by 2.9%, taking total industry AUM to $3.24tn. Across most strategies, strong returns have been the central driver of asset growth, with the industry posting gains of 5.44% through Q1-Q3 2016. Strong performance for equity and macro strategies funds overcame net investor redemptions to see their AUM grow in the first three quarters of the year, while credit, relative value and multi-strategy funds all saw their total assets fall. By contrast, though, CTAs have seen net inflows of $27bn in 2016 YTD, growing the strategy’s AUM by 13.5% to reach $253bn despite only making gains of 0.97% across the first three quarters. Other Key Hedge Fund Asset Flow Facts:
“2016 has been a difficult year for the hedge fund industry; ongoing investor concerns about the performance of the asset class and the fees that funds charge have made both raising and retaining investor capital increasingly challenging for hedge fund managers. As a result, outflows have increased over each of the three quarters in 2016 todate, and nearly every leading strategy has seen net redemptions from investors. However, strong industry performance and the resulting growth in total industry assets under management strike a more positive note. The Preqin All-Strategies Hedge Fund benchmark has added positive returns throughout Q2 and Q3, and the industry has enjoyed its largest performance gain since 2012-13. Therefore, while investors may continue to pull capital out of hedge funds in the short term, if managers can continue this run of strong returns, particularly in unpredictable markets, and prove their role in institutional portfolios, then we may see inflows return to the industry in 2017. Amy Bensted – Head of Hedge Fund Products, Preqin
|
Industry Updates
Hedge fund assets grow despite investor redemptions
Tuesday, November 22, 2016
|
|