Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds navigated another turbulent month for the global economy and markets with the average fund losing 0.3% - down 1.6% YTD

Wednesday, March 23, 2022
Opalesque Industry Update - Investor capital flowed out of the hedge fund industry in February, reversing the positive movement in January. Redemptions outweighed allocations by $3bn last month, but year-to-date flows remain positive to the tune of about $8bn after high January inflows, said HFM hedge fund flows report.

Hedge funds navigated another turbulent month for the global economy and markets, which culminated in Russia's invasion of Ukraine. The average fund lost 0.3%, leaving it down 1.6% year-to-date.

Multi-strategy was most popular, attracting net inflows of more than $3bn, while long/short equity suffered steep outflows of more than $8bn.

Long/short equity funds suffered net outflows (-$8.4bn) for a fourth consecutive month as investors target diversification away from stock-based strategies. The turn away from equities is underlined by event-driven seeing outflows for a sixth straight month.

Net inflows worth $8bn across multistrategy, fixed income/credit and macro could not turn February flows positive. All three strategy groupings have been in favor in recent months.

The industry has attracted over $8bn in net inflows year-to-date, but more than half of hedge funds have had net outflows.

Despite high net outflows from long/short equity, continuing the recent trend, about half of funds in the strategy have had inflows this year.

Event-driven funds (68%) were most likely to have had outflows year-todate, indicating dissatisfaction is more widespread. RV/arbitrage fared best on inflows, at 60%.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1