Thu, Jul 9, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund flows remain high amidst market volatility: eVestment

Friday, June 26, 2020
Opalesque Industry Update - Investor flows were near flat in May, with net inflows of an estimated $1.71 billion into hedge funds. Total estimated industry assets rose again due to performance gains as AUM sits near $3.05 trillion, said eVestment.

The net flow of assets across the hedge fund industry in May does not highlight what remains a volatile period for industry flows. In March and April, the volume of asset movement was high mainly because there were some significant redemptions.

In the full year periods of 2018 and 2019, the volumes of asset movement were lower, but the problem then was outflows were not being offset by meaningful new allocations. That the data in May shows flows were near flat and the volume of asset movement was high is a sign that new allocations are being made while redemptions persist.

Investor flows were near flat in May, with net inflows of an estimated $1.71 billion into hedge funds. Total estimated industry assets rose again due to performance gains as AUM sits near $3.05 trillion.

The volume of asset movement is the sum of the absolute value of fund-level net inflows and net outflows, divided by prior period reported assets and is useful to compare how much money is in motion month to month. The average monthly volume for 2019 was about 2.6% of reported assets.

In March 2020, the value rose to 4.9%, meaning a very large amount of money was moving in and out. That was the highest reading since at least 2015, the earliest point of tracking this statistic.

In April and May, the value was 3.4% and 3.3%, meaning compared to the last couple of years (2018's average was also around 2.6%), there remains a lot of money moving about the industry even as net flows were nearly flat during the month of May.

Article source - Opalesque is not responsible for the content of external internet sites

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: Disruption from COVID-19 hits ASEAN private equity hard, VCs see much to like in Democrats' $1.5tn Moving Forward Act, US PE firms play the long game as deal-making comes back into focus[more]

    Disruption from COVID-19 hits ASEAN private equity hard Opalesque Industry Update - After a strong 2019, the ASEAN private equity industry has been shaken by the outbreak of the COVID-19 pandemic, reports Preqin. As of September 2019, ASEAN-focused private equity and venture capital asset

  2. Coronavirus crisis: PE industry mulls more realism and longer holding periods[more]

    Laxman Pai, Opalesque Asia: More realism, longer holding periods and an advantage for investors with a long-term focus - these are the main changes that investment managers in the German private equity market expect as a result of the coronavirus crisis. The PE transaction activity is not exp

  3. Multi-strategy hedge funds post double-digit gains, Tiger Global, Coatue score double-digit fund gains in 2020, Lone Pine soars after losses earlier this year, Can Pershing Square's standout year continue?[more]

    Multi-strategy hedge funds post double-digit gains From FT: Large multi-strategy hedge funds have posted double-digit gains for the first half of the year, reversing losses from March, as markets defied the economic downturn brought on by the coronavirus pandemic. Citadel Advisors

  4. Tech: Pandemic boosts digitalisation across the fund industry, The India-China bust up and what it may mean for tech, Machine learning goes global[more]

    Pandemic boosts digitalisation across the fund industry From International Investment: The pandemic has certainly accelerated change and digitalisation in ways that we never imagined, including the funds industry in Luxembourg. Business Continuity Planning and Disaster Recovery Pl

  5. 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