- Advertisement -

Related

Will Hedge Funds Stop Bleeding Assets?

- Advertisement -

Stockholm (HedgeNordic) – In August, investors pulled money out of the hedge fund industry for a sixth consecutive month, with the industry suffering net outflows in eleven of the last twelve months. According to eVestment, investors redeemed an estimated $6.5 billion from the industry last month, which brought the year-to-date outflows to $63.6 billion. Net outflows and negative performance reduced the industry’s overall assets under management to $3.26 trillion.

Last month’s net outflows from the industry are mainly attributable to net redemptions from macro and long/short equity funds. Most other strategy categories tracked by eVestment experienced net inflows. Macro hedge funds suffered net redemptions of $6.2 billion in August, bringing the year-to-date net outflows to $18.6 billion. Long/short equity funds, meanwhile, had net redemptions of $5.3 billion last month and $31.1 billion year-to-date.

After 17 consecutive months of redemptions outpacing allocations to managed futures funds, this strategy category received net inflows of $1.5 billion last month and put an end to the asset-losing streak. While allocations did outpace redemptions on aggregate, only 35 percent of managers received net inflows last month. Investors redeemed a net $10.6 billion from managed futures funds so far in 2019, according to eVestment.

Whereas most strategy groups received net inflows on aggregate last month, rarely did the majority of funds obtain net inflows. Only within the event-driven category did more vehicles receive more inflows than outflows. About 30 percent of long/short equity managers reporting to eVestment received more allocations than redemptions in 2019. Last month, the meaningful inflows in this strategy group went to those managers that produced meaningfully positive results in 2018.

 

eVestment’s Hedge Fund Asset Flows Report for August can be accessed below:

 

Photo by Brook Anderson on Unsplash

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

Simplicity Completes Norron Deal

Three months after announcing the deal, Swedish asset manager Simplicity has completed its acquisition of Norron’s fund management business, taking over the management of...

Rethinking the 60/40 Portfolio

The 60/40 portfolio remains one of investing’s most recognizable conventions, even where few institutional portfolios literally consist of 60 percent equities and 40 percent...

Diversification That Comes From Somewhere Else

Insurance-linked investments offer something increasingly difficult to find in institutional portfolios: return drivers that are fundamentally different from those behind equities and bonds. At...

Reinforce, Don’t Replace: Carrying the 60/40 Through the Fragile Decade

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Despite its ambiguous origins, the 60/40 remains the default portfolio for investors approaching...

Varma: Practical Considerations for Embracing a Total Portfolio View

Finland’s Varma is one of several large Nordic asset owners that has been moving towards a more holistic view of the portfolio – some...

Thinking Outside the 60/40 Box: How Active and Dynamic Commodities Can Complement Bonds

Bonds helped investors to diversify equity between about 2000 and 2021, which more than covers the entire career of many allocators. Since 2022 bonds...

Allocator Interviews

- Advertisement -

Voices

Request for Proposal

- Advertisement -