- Advertisement -
- Advertisement -

Hedge fund assets increase in second quarter

- Advertisement -

Hedge fund assets under management increased in the second quarter of 2016, recovering the decline from the previous quarter and rising above year-end 2015 to reach the third highest quarterly capital total on record, HFR´s Global Hedge Fund Industry Report reveals.

Total capital allocated to hedge funds rose to USD 2.898 trillion as of June 30, an increase of USD 42.06 billion during the quarter. The current capital level was only surpassed in Q1 2015 and Q2 2015, at which time capital peaked at a record USD2.969 trillion, before falling into year-end 2015.

Among the different sub-strategies tracked by HFR, event driven strategies had the largest capital gains during the quarter, although solely driven by performance-based gains as the strategy experienced net investor outflows.

Similarly, fixed income relative value arbitrage strategies also posted performance driven gains nearing the record level experienced in the second quarter 2015.

Macro hedge funds gained 1.68 per cent in the second quarter according to HFR, increasing total capital invested in the strategy to USD 557 billion. The best performing sub-strategy in the macro category was the systematic/diversisfied CTA index. CTA assets rose to USD 270 billion during the quarter, also its highest level since Q1 2015.

Hedge fund capital allocated to the largest strategy by assets, equity hedge, rose to USD 813.9 billion in the second quarter although remaining below the year-end level of 2015. Investors allocated USD 2.4 billion of net new capital to equity market neutral funds in 2Q, bringing 1H inflows to USD5.0 billion for this sub-strategy, though these were offset by outflows from Fundamental strategies over the quarter and entire first half of 2016

Capital flows to hedge funds were dominated by smaller names in the second quarter while large hedge funds, managing above USD 1 billion, experienced net outflows.

Picture (c): Rrraum – shutterstock.com


Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

HedgeNordic Editorial Team
HedgeNordic Editorial Team
This article was written, or published, by the HedgeNordic editorial team.

Latest Articles

January: Mirror Image of 2022 for Nordic CTAs

Stockholm (HedgeNordic) – The average return of the eight “CTA” constituents of the Nordic Hedge Index that had positive performance in 2022 was 14.4...

Did Energy Prices Cause This Inflation Surge?

Copenhagen – (Jesper Rangvid): You often hear that soaring energy prices, caused by supply-chain disruptions resulting from the pandemic and the war in Ukraine,...

UB Launches Forest-Focused PE Fund

Stockholm (HedgeNordic) – United Bankers is launching a private equity fund investing in forest and bio-based industries. The fund, named UB Forest Industry Green...

Origo’s First Ten Years on (a) Quest

Stockholm (HedgeNordic) – Long/short equity fund Origo Quest is celebrating ten years of bargain hunting in the universe of Nordic small-cap stocks. After a...

The Cycle is Back and so is Active Investing

Stockholm (HedgeNordic) – The relationship between equities and bonds has traditionally been inverse, making bonds a leading choice as a diversifier to an equities...

Alcur’s Third Win in a Row

Stockholm (HedgeNordic) – Alcur Fonder’s first hedge fund, Alcur, has been named “Hedge Fund of the Year” by Swedish business magazine Privata Affärer for...


Most Popular This Week


Request for Proposal

- Advertisement -