- Advertisement -

Related

Will Hedge Funds Stop Bleeding Assets?

Powering Hedge Funds

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

AP3 Hires Lynx’s Mattias Sundbom as Head of Portfolio Strategy

After spending the past decade at some of Sweden’s largest systematic asset managers, most recently at Lynx Asset Management, Mattias Sundbom has now moved...

Colosseum’s Rollercoaster Start Gives Way to Strong Rebound

Early investors in the freshly launched Colosseum Global Alpha have experienced a rollercoaster ride in recent months, though the latest stretch has been largely...

Nordic CTAs Thrive in February’s Volatile Macro Landscape

February proved to be another favorable month for Nordic CTA managers, leaving CTAs as the best-performing sub-strategy in the Nordic Hedge Index so far...

Core, Satellite, and Structural Premiums: PensionDanmark’s Approach to Emerging Market Debt

Many institutional investors have gradually internalized mandates once awarded to external managers, seeking tighter cost control, greater transparency, and improved alignment. Emerging market debt...

PIMCO: Similar Yields, Better Risk Profile in European High Yield

The U.S. high yield market has long been regarded as the global benchmark: deeper, more liquid, and broader in sector composition. For many allocators,...

Avoiding the Echo Chamber: Kraft’s Playbook in Tighter High-Yield Market

Delivering strong returns during a market rebound is one thing. Preserving performance momentum once spreads tighten and dispersion fades is another. That was the...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -