- Advertisement -
- Advertisement -

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

close

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

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...

Lynx is Fund Company of the Year, Says Privata Affärer

Stockholm (HedgeNordic) – Lynx Asset Management has been named “Fund Company of the Year” by Swedish business magazine Privata Affärer. The distinction comes after...

Latest

Most Popular This Week

Voices

Request for Proposal

- Advertisement -