Sun, Sep 25, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds end Q1 with +$17.68bn in flows - industry AUM at $3.417tn

Friday, April 30, 2021
Opalesque Industry Update - While investors pulled -$9.36 billion from the global hedge fund business in March, quarterly flows for the business remained positive, at +$17.68 billion, according to the just-released March 2021 eVestment Hedge Fund Asset Flows Report. Hedge funds' strong performance so far this year, which has sparked renewed interest in the business among some investors, also added to overall assets under management (AUM), increasing total hedge fund business AUM to $3.417 trillion at the end of Q1.

"The theme of broadly distributed inflows we've seen in previous months this year slowed in March, with the overall proportion of funds with inflows in March at 47%," said eVestment Global Head of Research Peter Laurelli. "Unfortunately, several funds, some with long and impressive track records, are seeing redemption repercussions from underperformance in 2020, hurting the overall picture of their segments and the hedge fund business."

Macro hedge funds were big asset losers among primary strategies eVestment tracks in March, with investors pulling -$4.34 billion from these funds last month. Inflows to these funds in January and February were erased for the quarter, with Q1 2021 flows now standing at -$180 million. And following the inflows in January and February, Macro fund managers can't be happy to see the trend turn and must be eager to avoid the huge outflows these funds experienced in 2020 (-$14.10 billion) and in 2019 (-$20.60 billion).

Long/Short Equity funds were also big asset losers in March among primary strategies, with investors pulling -$3.42 billion from these funds, bringing Q1 flows to -$5.34 billion. However, according to Laurelli, a large part of these funds' net outlfows are highly concentrated within a couple of firms. With those redemptions removed, Long/Short Equity funds would be seeing net inflows in 2021.

On the plus side, net flows to Multi Strategy funds in March were positive at +$2.27 billion, representing the sixth month in the last seven that these funds had inflows. Q1 2021 flows stand at +$12.09 billion, which is likely a welcome change for Multi Strategy fund managers who saw investors pull -$2.37 billion from these funds in 2020 and -$18.31 billion in 2019.

The majority of primary strategies eVestment tracks are still positive for new investor money for the first quarter, but some just barely, as investor redemptions take a toll on what had looked to be a more positive story through February.

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: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: Castle Hall, the Du

  2. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  3. Opalesque Exclusive: This European mezzanine debt strategy offers equity-like returns with downside protection[more]

    B. G., Opalesque Geneva for New Managers: Mezzanine financier SIG-i operates in a relatively uncrowded space by proactively manufacturing financing solutions as an alternative to traditional debt and equity instrume

  4. Opalesque Video: Systematic Japan strategy follows the 'Keep it Simple' rule[more]

    B. G., Opalesque Geneva: For those looking to invest in the current opportunities underlying managed futures in Japan, here is a strategy that does just that, with the benefits of leverage, shorts, Big Data, proprietary technology, and academic research on market psychology. K2Q Capital'

  5. Opalesque Exclusive: How blockchain is helping the small guy invest in hedge funds[more]

    B. G., Opalesque Geneva: ADDX, Asia's largest private market exchange, is on a mission to democratise the private capital markets through blockchain and smart contract technology. With these technologies, the exchange can eliminate manual interven