- Advertisement -

Related

Hedge Fund Flows Positive but Well Below Historic Levels

- Advertisement -

Stockholm (HedgeNordic) – The month of February saw hedge funds receive $1.69 billion in capital from investors, ending a five-month streak of consecutive outflows. According to eVestment, capital flows for February represent a key industry bellwether of net flows for the hedge fund industry. Last February’s level of new investment, however, marked the industry’s worst February for net flows in a decade.

Historically, February has been an important month for the hedge fund industry, as new allocations usually start flowing heavily into the industry during this period of the year. In the past ten years, the level of new investment in February amounted to $17 billion on average, significantly above the $1.69 billion in new capital received by the industry last month. In addition, no aggregate outflows from the hedge fund industry have been recorded in the past decade. Coupled with a $20.6 billion increase in assets due to positive performance in February, the industry’s asset under management stand at $3.24 trillion as of the end of February.

Hedge fund strategies that delivered disappointing returns in 2018 suffered the most significant outflows in February and the first two months of 2019. Long/short equity hedge funds registered the largest outflows in 2019, which totaled $6.1 billion. Investors removed an estimated $4.3 billion and $3.3 billion from macro-focused hedge funds and managed futures vehicles in the first two months of the year. Two-thirds of macro and managed futures strategies had redemptions pressures in 2019.

Among hedge fund strategies that received the largest inflows year-to-date, multi-strategy hedge funds received strong new investment for a second consecutive month. Multi-strategy hedge funds received $7.7 billion in new capital in the first two months of 2019. According to eVestment’s latest asset flow report, the ten vehicles with the largest inflows in February returned three percent on average last year, which shows that last year’s good performers are receiving strong investor interest in 2019. eVestment has also observed that investors have a clear preference for larger hedge fund managers when deploying new capital.

eVestment’s complete Hedge Fund Industry Asset Flow Report can be downloaded below:

 

Picture © alphaspirit—shutterstock

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

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

The Madness of Crowds Creates Short Opportunities in Nordic Small Caps

Shorting Nordic small and mid-cap stocks requires more than identifying companies whose valuations appear stretched. Limited borrow availability, thin trading volumes, and unpredictable price...

Anna Svahn on Risk, Adaptability, and the Art of Portfolio Management

Anna Svahn took an unconventional route into portfolio management, building her investment experience through personal trading, writing, and entrepreneurship rather than investment banking or...

Sebastian Hallenius to Lead IKC Capital’s Next Phase

Sebastian Hallenius has joined IKC Capital as Chief Investment Officer and incoming CEO after nine years at Länsförsäkringar Fonder, where he helped bring externally...

SEB Asset Selection Marks 20 Years of Trend-Following Evolution

Twenty years is a long time in the hedge fund industry, where strategies evolve, market environments change, and investment teams come and go. Once...

Atlant Fonder Eyes €1 Billion as Fund Distribution Landscape Shifts

In the Nordic hedge fund industry, funds managing more than €1 billion have typically built their scale with strong institutional backing. Atlant Fonder’s flagship...

Cyber Risk Tops Asset Managers’ Concerns as Investment Risks Rise

Technology and cybersecurity have emerged as the leading concerns for asset managers over the coming year, even as firms report rising exposure to market,...

Allocator Interviews

Voices

Request for Proposal

- Advertisement -