Sat, Nov 16, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund industry sees 6th consecutive quarter of outflows

Thursday, October 24, 2019
Opalesque Industry Update - Investors redeemed at estimated $12.11 billion from the global hedge fund industry in September 2019, bringing year to date (YTD) flows to -$76.86 billion, according to the just-released September 2019 eVestment Hedge Fund Asset Flows Report.

The total Q3 2019 outflows of -$29.37 billion marked the sixth consecutive quarterly outflow for the industry.

Total hedge fund industry AUM stood at $3.266 trillion at the end of September, according to the new report.

Among primary hedge fund strategies, the best asset flows news was among Relative Value Credit funds, which pulled in +$2.78 billion in September, and Managed Futures funds, which pulled in +$2.35 billion in September.

And while Relative Value Credit funds are just barely in the green for asset flows this year, Managed Futures funds are deeply in the red at -$8.68 billion for 2019, which follows on a large -$19.33 billion outflow in 2018.

While Event Driven funds barely eked out positive asset flows in September, with investors adding +$830 million to these funds, they've been big asset flow winners for the year, pulling in +$13.26 billion in new money.

MBS Strategies were also just barely in the green for asset flows in September, pulling in +$110 million and enjoying YTD flows of +$6.43 billion.

Long/Short Equity funds were the big asset losers among primary strategies in September, seeing outflows of -$5.73 billion last month. These funds are also deeply in the red for the year, with investors removing -$36.39 billion YTD. Although with AUM at $760.64 billion, they're the largest primary strategy eVestment tracks.

Multi-Strategy funds also saw elevated outflows in September at -$5.56 billion.

With hedge fund performance being largely positive so far this year, eVestment Global Head of Research Peter Laurelli sees these asset flow trends as pointing to potential consolidation in the industry. He notes that while on average the outflows look daunting, many funds that are performing well are finding investors willing to invest new money.

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: Private equity is the new stock, Private equity fundraising in the US hits all-time high, Foreign private equity firms lead $152bn blitz on London Stock Exchange[more]

    Private equity is the new stock From Institutional Investor: The traditional portfolio of stocks and bonds needs an alternative investment shake-up after failed monetary policy, according to executives at JPMorgan Chase & Co.'s asset management unit. "We are in an odd cyclical posit

  2. Opinion: Cliff Asness: It's 'time to sin'[more]

    From Institutional Investor: Timing the market can be "deceptively difficult," as quantitative investor Cliff Asness has pointed out before. But now, the AQR Capital Management co-founder believes that while factor timing is "an ugly thing," it is "about time we did some" - specifically when it com

  3. Investing: Hedge fund Whitebox places big bet on gunmaker Remington, Quant funds exit Japanese bonds in worst sell-off since 2013[more]

    Hedge fund Whitebox places big bet on gunmaker Remington From Reuters: Whitebox Advisors LLC, a credit-focused hedge fund, has been quietly capitalizing on Wall Street's ambivalence toward gun manufacturers by replacing some banks as a lender to Remington Outdoor Company. Whitebox

  4. Tech: Investors race to tech start-ups despite SoftBank stumbles, Two Sigma launches risk management software[more]

    Investors race to tech start-ups despite SoftBank stumbles From FT: Investors are planning to pour billions more dollars into later stage tech start-ups, even as Japan's SoftBank reels from a succession of faltering bets. Stephen Schwarzman's Blackstone plans to raise between $3bn and $4b

  5. Regulatory: Carried interest tax rules slated for 2020, official says[more]

    From Bloomberg: The Treasury Department is planning to issue regulations restricting how hedge fund managers can claim a valuable tax break early next year, a top Treasury official said. The regulations will likely bar money managers from using S corporations to take advantage of an exemption