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Hedge funds experienced $7.6 bn in net flows YTD, with 62% of funds having had net outflows

Wednesday, May 25, 2022
Opalesque Industry Update - Investors redeemed a net $10.5bn from hedge funds in April, marking a sharp turnaround from the past three months which saw the industry experiencing three consecutive months of inflows totaling $18.1bn.

The hedge fund industry has experienced $7.6bn in net flows YTD, with 62% of funds having had net outflows, said the HFM Hedge Fund Flows Report.

April was a particularly challenging month for the financial markets as the tightening of COVID-19 curbs in China aggravated disruptions to global supply chains that were already impacted by the two-year long pandemic and the ongoing Russia-Ukraine conflict.

Four of the seven top level strategies recorded net outflows in April, with long/short equity funds suffering the steepest outflows of $6.8bn. On the other end of the spectrum, multi-strategy attracted the largest inflows of $3.2bn, extending its streak of consecutive monthly positive flows to four months

Multi-strategy ($3.2bn), managed futures ($2.0bn) and event-driven ($1.1bn) strategies combined for a $6bn inflow in April.

Fixed Income/Credit funds suffered net outflows (-$3.1bn) for a fourth consecutive month as markets anticipated further monetary policy tightening by global central banks to rein in spiraling inflation.

Macro (-$5.4bn) and long/short equity (-$6.8bn) posted outflows in April, marking a sharp turn for the former after experiencing inflows since December 2021. .

Despite posting $0bn in net flows YTD, the majority of event-driven funds (70%) have had outflows this year Fixed Income/Credit (-$8bn) and L/S equity (-$12bn) accounted for the lion's share of outflows YTD, with 65% and 57% of funds having had net outflows respectively.

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