Wed, Jul 15, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Nearly 45% of hedge funds see inflows, but October marks 8th consecutive month of industry outflows

Friday, November 22, 2019
Opalesque Industry Update - The balancing act of asset inflows and outflows worked against the hedge fund industry again in October, with investors redeeming $6.20 billion from the industry, according to the just-released October 2019 eVestment Hedge Fund Asset Flows Report.

While 45% of funds did experience inflows last month, the overall asset outflows in October marked the 8th consecutive month of outflows for the industry. The last time the industry experienced this many consecutive months of outflows began in Q3 2008 and persisted until April 2009.

Overall hedge fund industry AUM stood at $3.258 trillion in October, according to the new report.

Managed Futures funds turned around a string of investor redemptions from earlier this year beginning in August and brought in an additional $2.55 billion in new AUM in October, making these funds the big asset winners among primary strategies in October. That momentum hasn't been enough yet to turn around negative flows of -$6.78 billion year to date (YTD).

Other primary strategies that were in the green for asset flows in October were Relative Value Credit, Directional Credit, Event Driven and MBS Strategies, although all of these funds' inflows were below $1 billion, and in the case of MBS Strategies, barely positive at +$90 million.

Long/Short Equity funds saw continued large asset outflows in October at -$4.84 billion. 3Q 2019 Long/Short Equity outflows totaled -$15.10 billion and these funds have seen -$40.91 billion in outflows YTD.

Macro funds also saw big outflows in October, with -$2.68 billion fleeing these strategies in October and -$23.21 billion YTD.

The elevated redemption pressures facing Emerging Markets products in the last two months subsided a bit in October. This is not because redemptions broadly abated during the month, but more because some new allocations were made to China equity products and global EM credit.

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. New Launches: Hedge fund Marshall Wace will bet on ESG stocks with new $1bn fund, Stafford Capital raises initial $532m for ninth timberland fund, Nalanda Cap eyes $800m fund, China's Unity Ventures hits first close on US dollar fund[more]

    Hedge fund Marshall Wace will bet on ESG stocks with new $1bn fund From Forbes: Hedge fund Marshall Wace plans to raise $1 billion for a new fund that will invest in stocks with strong environmental, sustainability and governance (ESG) ratings while betting against stocks with poor rating

  2. PPP: Troubled firm Marto Capital asked for PPP money - and got approved, records show, Fallen hedge fund's head among money managers getting PPP relief, Wall Street investors scored emergency government loans amid pandemic, The asset managers approved for PPP money[more]

    Troubled firm Marto Capital asked for PPP money - and got approved, records show From Institutional Investor: Marto Capital - a former wunderkind founded by an ex-Bridgewater Associates star - got approved for emergency funds from the U.S. government, records showed Monday. Katina Stef

  3. PE/VC: Not all VC investors are being slowed down by the pandemic, GP-led secondaries to increase in post-Covid-19 resurgence, Some private-equity firms see early signs of a deal thaw, New York private equity goes for the jugular in Germany[more]

    Not all VC investors are being slowed down by the pandemic From Pitchbook: As the venture capital industry pumped the brakes on dealmaking, a handful of investors are taking a different tack. Among the top 20 most active US VC firms with assets under management of $500 million or more,

  4. Satori Capital buys into hedge fund manager Mountain Cove Capital Management[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has agreed to back compatriot investment firm Mountain Cove Capital Management. Satori, a multi-strategy firm with more than $1 billion in assets under management, co

  5. SEC proposes to amend Form 13F[more]

    B. G., Opalesque Geneva: The Securities and Exchange Commission (SEC) said on Friday that it had proposed to amend Form 13F - for the first time in more than 40 years. The proposal will update the reporting threshold (currently at $100m) for institutional investment managers and make other change