Sun, May 22, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Billions flow into hedge funds in August, nearly 60% of funds see new money

Thursday, September 24, 2020
Opalesque Industry Update - After a four-month string of asset outflows from hedge funds in March through June, hedge funds continued in asset-recovery mode in August, with investors adding $7.36 billion to the industry last month, according to the just-released August 2020 eVestment Hedge Fund Asset Flows Report. This follows on more than $9 billion added to hedge funds in July.

Year to date (YTD) the industry is still deeply in the red, with investors pulling some $37.59 billion from hedge funds so far this year. Overall industry AUM stands at $3.197 trillion.

eVestment Global of Research Peter Laurelli, the report's author, notes the volume of asset flows was light in August, but well disbursed, with a majority of the funds eVestment tracks seeing asset inflows.

"August was generally a broadly positive month for the hedge fund industry, though there were pockets of large redemptions clouding the picture," said Laurelli. "The proportion of funds with inflows was nearly 60%, which would make August 2020 the second most broadly positive month for hedge fund asset flows in the past five years."

Among major fund types, Fixed Income/Credit funds were big asset winners, pulling in +$2.97 billion in August, although these fund are still down -$6.36 billion YTD. Commodities funds were up +$1.47 billion in August and are up +$3.50 billion for the year.

Among the primary hedge fund strategies eVestment tracks, Macro funds saw the most new money in August, pulling in +$2.84 billion. These funds have a lot of ground to make up, however, as they are down -$13.26 billion YTD, on top of -$20.60 billion investors pulled from Macro funds in 2019.

Event Driven hedge funds are continuing a long-running winning streak. These funds saw +$1.75 billion in new investor money in August and are up YTD +$6.21 billion. This adds to just over +$11 billion investors added to Event Driven funds in 2019.

On the other hand, Long/Short Equity funds continued a long-running losing streak in August. Investors pulled -$1.88 billion from these funds in August, bringing YTD investor redemptions to -$12.36 billion. This is on top of a massive -$44.49 billion investors pulled from these funds in 2019 and a less dramatic but still meaningful -$10.74 billion investors pulled from Long/Short Equity funds in 2018.

While Multi-Strategy funds were just barely negative for flows in August, with investors pulling -$360 million from this sector, those outflows were highly concentrated in August and the majority of Multi-Strategy funds appeared to have inflows during the month.

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. Opalesque Exclusive: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  3. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  4. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm

  5. Other Voices: The selloff is overdone[more]

    Authored by Heeten Doshi, founder of Doshi Capital Management. Anyone who is still bearish and calling for more downside is foolish. The selloff is overdone. To point to further declines from here is poor risk management. With the Nasdaq 100 down 22% and S&P 500 down 13% for the year