Mon, Feb 17, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund lose 3% of assets through outflows in 2019, much less than long equity

Thursday, January 23, 2020
Opalesque Industry Update - The global hedge fund industry saw outflows of -$97.93 billion in 2019, according to the just-released December/Year-End 2019 eVestment Hedge Fund Asset Flows report.

Despite these redemptions, total hedge fund industry AUM rose past $3.3 trillion at the end of the year due to performance gains, according to the new eVestment report.

December 2019's outflows of -$16.21 billion capped off a tough year for the industry, which saw most fund-types and strategies in the red or essentially flat for December and/or for the full year.

However, the 2019 full-year hedge fund outflows of nearly -$100 billion represent less than 3% of total industry AUM. And to further put these figures in perspective, active long-only US equity strategies report about $7.1 trillion in AUM to eVestment, more than double the size of the hedge fund industry.

Through only Q3 in 2019 (the most current data eVestment has available for traditional strategies), this universe has seen redemptions of more than -$350 billion, over 5% of its AUM.

So while hedge fund redemptions have been elevated in 2019, according to the report, the hedge fund industry is not alone in feeling redemption pressure, nor is it near the top in terms flow amounts or percentages.

Among primary strategies tracked by eVestment, Long/Short Equity funds were the big asset losers in 2019, with investors pulling -$45.61 billion from these strategies. In December, investors pulled -$3.90 billion from Long/Short Equity strategies.

Coming in second for investor redemptions in 2019 among major strategies were Multi Strategy funds, which saw -$21.19 billion pulled by investors in 2019 (with -$7.68 billion pulled in December).

Macro funds were big asset winners among primary strategies in December, with investors adding +$3.87 billion, but these funds are still down -$18.42 billion for the year.

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. Other Voices: Evolution of shrinking hedge fund fees - what do investors and managers need to know?[more]

    By Don Steinbrugge, Founder and CEO, Agecroft Partners ( Hedge funds fees remain under extreme pressure across the industry. This strong trend is driven by declining return expectations from investors, inc

  2. Europe: France's BNP Paribas on prowl for further European expansion, European secondaries market expansion yet to reach a ceiling[more]

    France's BNP Paribas on prowl for further European expansion From Reuters: BNP Paribas is looking for further opportunities to expand its investment banking franchise in Europe and fortify its lead over local rivals after last year taking over Deutsche Bank's electronic equity and prim

  3. PE/VC: Venture capital for Canadian companies up 16% from last year, Venture capital helped fuel Silicon Valley. Is it also destroying it?[more]

    Venture capital for Canadian companies up 16% from last year A new study says Canadian venture capital-backed companies raised $5.4 billion over 469 deals last year, marking the third consecutive year of increased VC funding in the country. The MoneyTree Canada report from PwC Canada an

  4. Institutional Investors: UK pension giant Universities Superannuation Scheme to cut hedge funds, Texas County puts $225m in 3 alts funds, Korea's $600bn pension fund to be more active shareholder, CalPERS walking its own path on asset allocation, New York State Teachers' assigns $150m to real estate fund, LD turns to active quant for first time, launches tender worth $147m initially, Texas Teachers commits $250m to opportunistic real estate[more]

    UK pension giant Universities Superannuation Scheme to cut hedge funds The UK's largest private pension manager is slashing its investment in hedge funds, joining an exodus of investors fed up with years of mediocre returns and high fees. The Universities Superannuation Scheme plans

  5. Global pensions loading up on alternative investments says study[more]

    Laxman Pai, Opalesque Asia: Global pension funds remain committed to increasing their exposure to private equity, real estate, and other alternatives, says a study. A new report from Willis Towers Watson's Thinking Ahead Institute revealed that the shift to alternative assets continues apace