Thu, Oct 17, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds enjoy inflows in March amid equity market correction industry assets hit all-time high

Wednesday, May 30, 2018
Opalesque Industry Update - Hedge fund investors held their ground in March 2018, according to the Barclay Fund Flow Indicator, even as the equity market correction entered its second month. Industry assets climbed to an all-time high of $3.0 trillion.

Data drawn from more than 5,000 hedge funds in the BarclayHedge database estimated that the hedge fund industry, exclusive of CTAs, added $6.1 billion (0.2% of assets) in March, down 64.0% from February. Hedge funds have added assets in 10 of the past 12 months, according to the Barclay Fund Flow Indicator, a monthly big-picture report on the health of the alternative investments industry.

"The long-running U.S. bull market in equities and the more recent upturns in economies worldwide have put hedge fund assets on a tear for the past half-decade," said Sol Waksman, founder and president of BarclayHedge. "Assets have surged 22.1% in the past 12 months, 28.9% in the past two years, and 42.6% since March 2013."

Fixed Income hedge funds enjoyed the heaviest inflows in the trailing 12 months ending in March ($33.6 billion, 7.3% of assets), the Barclay report estimated. Macro funds suffered the heaviest outflows in the same time span (-$16.9 billion, -7.7% of assets).

At the regional level, funds focusing on the U.K. and Europe had the highest inflows ($9.2 billion, 1.5% of assets; and $2.6 billion, 0.3% of assets, respectively) in March. U.S.-focused funds endured the biggest outflows (-$6.3 billion, -0.4% of assets).

"Jitters over trade policy and potential tariffs coming out of Washington, D.C., appear to have lured hedge fund investors to relative stability across the Atlantic," Waksman said.

In March, commodity trader adviser (CTA) funds suffered outflows for the first time in more than a year (-$278.6 million, -0.1% of assets), according to the Fund Flow Indicator. Industry assets totaled $367.3 billion in March.

"In spite of the small setback in March, CTA assets grew 4.6% over the trailing 12 months," Waksman said. "The global rebound in commodities prices has pushed CTA assets up 11.9% from their interim low of $328.2 billion in October 2014."

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. Venture firm Mithril Capital says it has been under assault by its former general counsel[more]

    It's been a strange year for Mithril Capital Management, the venture firm cofounded in 2012 by Peter Thiel and his longtime associate Ajay Royan. Though Mithril enjoyed its biggest exit to date in February, when Johnson & Johnson agreed to pay $3.4 billion, plus another potential $2.35 billion i

  2. Gen Z and Money: Will the youngest generation of adults drive FinTech?, Robo-Advisor to offer actively managed portfolios based on hedge fund holdings[more]

    Gen Z and Money: Will the youngest generation of adults drive FinTech? Findings released in the Logica Future of Money Study show that Gen Z is pioneering work opportunities in a social and tech-based workforce. Key findings also indicate an increasing interest in computer-based advice to

  3. CTAs slide in September[more]

    From Institutional Investor: Commodity trading advisers had a post-summer swoon in September. After posting two strong months of performance in July and August, the computer-driven strategy - also called managed futures - reported losses mostly ranging between 3 percent and 5 percent last month.

  4. Tech: Quantum computing may be closer than expected with 'game changer' discovery[more]

    From Inverse: While quantum computing has long been an exciting notion for scientists and the public alike, the realization of these technologists has long been on hold. But researchers from the Johns Hopkins University have discovered a material that might just fast-track the creation of these, unt

  5. PE/VC: Private-equity deals depress worker wages, study finds, Thoma Bravo to buy Sophos for $3.9bn, Unicorn valuations are fit to burst, warn investors[more]

    Private-equity deals depress worker wages, study finds From Market Watch: Private-equity deals result in worse pay for workers, and, depending on whether the buyout target was public or not, fewer jobs, according to a newly published study. The study of some 6,000 private-equity de