Tue, Jan 26, 2021
A A A
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. SPACs: SPAC costs are 'far higher' than previously realized, study finds, Jim Cramer recommends profit taking in speculative electric SPAC names.[more]

    SPAC costs are 'far higher' than previously realized, study finds From Institutional Investor: The costs of going public via a special-purpose acquisition company are both "opaque and far higher" than previously recognized, new research shows. SPAC shares tend to drop by one third or

  2. Institutional Investors: Pensions swamped in a sea of negative real rates, Bahrain's pension fund authority faces collapse[more]

    Pensions swamped in a sea of negative real rates From FA Mag: Defined-benefit pension plans were already barely treading water heading into 2020. In the years ahead, the risk is as great as ever that a large swath of them will drown. As the name implies, defined-benefit pensions promis

  3. New Launches: Lesser-known Tiger Seed launches long-only fund, Bill Gates-led fund raises another $1bn to invest in clean tech, Claret Capital strikes initial close for first fund since spinout from Harbert[more]

    Lesser-known Tiger Seed launches long-only fund From Institutional Investor: A hedge fund whose largest investor is Julian Robinson Jr.'s Tiger Management has launched a long-only fund as part of a larger reshuffling of its investment vehicles. Tiger Legatus Capital Management, a so-ca

  4. Opinion: Hedge-fund tycoon Seth Klarman says investors are like frogs slowly boiling in a pot, Bridgewater's CEO on inequality, uncertainty, and polarization[more]

    Hedge-fund tycoon Seth Klarman says investors are like frogs slowly boiling in a pot From NY Post: If you start to feel warm - with a sudden urge to hop out of the stock market - there might be a reason for that. A prominent hedge-fund tycoon said investors are like frogs who are gett

  5. PE/VC: Venture capital takes off: How the lines between VC and PE are blurring, Global venture capital clusters in fewer firms, Bumper year for UK private equity as deals soar 257%[more]

    Venture capital takes off: How the lines between VC and PE are blurring From PE News: As 2020 came to an end, Ian Connatty, managing director of British Patient Capital (BPC), had good reason to feel satisfied with the progress of the organisation that he helped set up in 2018. In