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Redemptions from hedge funds continue in August, but less widespread

Wednesday, September 25, 2019
Opalesque Industry Update - Investors redeemed an estimated $6.51 billion from the global hedge funds business in August 2019, bringing year-to-date (YTD) flows to a negative $63.61 billion, according to the August 2019 eVestment Hedge Fund Asset Flows Report. Performance also reduced assets as total industry AUM declined to $3.259 trillion last month.

The majority of primary strategies eVestment tracks actually saw asset inflows, but large outflows among Macro hedge funds (-$6.18 billion) and Long/Short Equity funds (-$5.33 billion) in August dwarfed those other inflows. YTD Long/Short Equity funds are the biggest asset losers among primary strategies eVestment tracks, seeing outflows of -$31.14 billion so far this year.

Event Driven funds were the big asset winners in August among primary strategies, pulling in +$2.59 billion during the month. YTD these funds have pulled in +$13.28 billion.

Managed Futures funds were also in the green for asset flows in August, pulling in $1.5 billion, but remain in the red for flows YTD at -$10.62 billion. In fact, it has been 17 months since overall allocations outpaced redemptions to Managed Futures funds.

MBS Strategies, Multi-Strategy, Convertible Arbitrage, Market Neutral Equity, Distressed and Relative Value Credit funds also eked out positive flows in August, but for most of them just barely.

Emerging Markets fund outflows in August rose to their highest level since June 2018, with investors pulling a -$1.54 billion from these funds. However, YTD these funds have still seen +$1.94 billion in new AUM.

European-based managers have, in aggregate, endured more than their proportional share of redemption pressures over the last year, with YTD flows at -$32.59 billion, but that paused in August as Americas-based managers accounted for the majority of outflows during the month, with August flows for funds based in the Americas at -$4.76 billion.

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