Industry Updates

Hedge fund industry starts the year strong with $30.5bn in January inflows

Wednesday, March 24, 2021

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Opalesque Industry Update - The hedge fund industry experienced $30.5 billion in inflows in January, a strong start to the year following a December that saw nearly balanced flow activity with $42.6 million in redemptions, reports BarclayHedge. January 2021's inflows represented 0.8% of industry assets.

A $9.5 billion trading profit in January brought total hedge fund industry assets to nearly $3.91 trillion as the month ended.

January's hedge fund inflows reflected growing investor optimism about an economic recovery fueled by positive COVID-19 vaccine developments. Equity markets enjoyed a historic November rally and ended 2020 at record levels as business activity accelerated in the U.S. and China and expectations grew for additional government stimulus actions.

Most hedge fund sectors brought in new assets in January. Fixed Income funds led the way bringing in $10.1 billion while Sector Specific funds added $9.5 billion. Multi-Strategy funds saw $6.8 billion in inflows in January, Emerging Markets - Asia funds brought in $4.9 billion and Emerging Markets - Global funds added $3.5 billion.

Sectors experiencing net redemptions in January included Macro Funds shedding $5.7 billion, Equity Long Bias funds with $2.5 billion in outflows, Equity Market Neutral funds with $2.3 billion in redemptions and Equity Long/Short funds which saw $1.4 billion exit.

*Assets under management (AUM) are calculated independently of flows and reflect new funds added to the database in January 2021. Hedge fund AUMs and flows as presented in this report do not include managed futures (CTA) AUMs and flows.