- 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

Elo’s Slow-Moving Hedge Fund Portfolio Built Around Access

Soon after Kari Vatanen joined Finnish pension insurer Elo as Head of Asset Allocation and Alternatives, he praised the team behind the firm’s hedge...

The New Coda: From Intuition to a Unified Investment Process

Peter Andersland is best known in the Nordic hedge fund space as the co-founder of Sector Asset Management, where he remains a shareholder. While...

When Diversification Fails: Qblue’s Case for Alternative Risk Premia

The notion that a traditional 60/40 portfolio offers meaningful diversification has long been questioned by practitioners. When implementing the Total Portfolio Approach at Danish...

Tidan NOVA Profiting from Volatility Skew as Market Participants Seek Protection

Tidan Capital’s evolution into a multi-strategy platform reflects a broader effort to deliver complementary sources of alpha, with its NOVA strategy serving as a...

Extracting Alpha from the Factor Zoo Through Systematic Investing

There are multiple ways to approach equity investing and, ultimately, the pursuit of alpha. While many strategies rely on market direction or discretionary stock...

Apoteket CIO Leans on Hedge Funds for High Sharpe

Gustav Karner, Chief Investment Officer of Apoteket’s Pension Fund since 2017, has delivered one of the highest Sharpe ratios among Sweden’s largest institutional investors,...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -