- Advertisement -
- Advertisement -

Hedge Fund Flows Positive but Well Below Historic Levels

Report: Systematic Strategies

- 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

Ridge Capital Expands Team After Hitting €100 Million Milestone

Stockholm (HedgeNordic) – With its unconventional high-yield bond strategy now exceeding €100 million in assets under management, Ridge Capital is expanding its portfolio management...

“7 Years, Niller, Then You Know a Thing or Two”

Stockholm (HedgeNordic) – There is a Danish saying that goes, “7 years, Niller, then you know a thing or two,” suggesting that seven years...

Brobacke Gains 7.6% in Early July, Predicts Continued Bull Market

Stockholm (HedgeNordic) – After a relatively flat first half of 2024, marked by noticeable month-over-month volatility, discretionary macro fund Brobacke Global Allokering advanced 7.6...

Kristofer Barrett Back to Managing Tech Fund

Stockholm (HedgeNordic) – Kristofer Barrett, the former portfolio manager of the multi-billion-dollar Swedbank Robur Technology fund, has returned to managing a technology-focused equity fund....

Tidan’s Resurgence Amid Markets Needing a Touch of Magic

Stockholm (HedgeNordic) – In late 2021, Michael Falken and his team at Tidan Capital launched a hedge fund employing a capital structure relative value...

The Value of Short Selling for Symmetry

Stockholm (HedgeNordic) – Stock-picking hedge fund Symmetry Invest has achieved a net-of-fees annualized return of 18 percent since its inception just over 11 years...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -