- Advertisement -
- Advertisement -

Related

HF Capital is Moving Fast: In and Out

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – After pulling $32.7 billion out of hedge funds in the first four months of 2020, investors added an estimated $1.7 billion to the global hedge fund industry in May, according to eVestment. The industry’s assets under management increased to $3.05 trillion due to performance gains.

Although last month’s figure of net flows was insignificant relative to the industry’s assets under management, the overall volume of asset movement – the sum of the absolute values of both inflows and outflows divided by the prior month’s reported assets – remained elevated. The average monthly volume of asset movement throughout 2019, for instance, was 2.6 percent of assets under management. The volume of asset movement relative to overall assets increased to 4.9 percent in March this year, which means that a large amount of capital was moving in and out of the hedge fund industry. The asset movement figures for April and May were 3.4 percent and 3.3. percent, respectively.

“The data in May shows flows were near flat and the volume of asset movement was high,” says Peter Laurelli, eVestment’s Global Head of Research. “This is a sign that new allocations are being made while redemptions persist,” he continues. The hedge fund industry’s assets under management have been hovering around $3 trillion since mid-2014. “More than anything else, performance has been the primary reason preventing assets from falling,” points out Laurelli. “This is not how an industry grows and thrives.”

Source: eVestment.

With an estimated $5.1 billion in net outflows, long/short equity funds experienced the largest volume of net redemptions as a group last month. In a report for the month of April, eVestment wrote that “while redemptions continued within this space, they were not nearly as high as other segments, despite some elevated losses within some prominent directional equity funds.” Last month’s net outflows appear to have been a reaction to the March losses incurred by long/short equity funds. The group’s net outflows for the first five months of 2020 amounted to $5.5 billion.

Macro managers, April’s biggest losers in terms of net outflows, received an estimated $5.1 billion in net inflows in May. “After three months of large redemptions, macro funds see some inflows,” writes eVestment. Macro managers experienced $14.4 billion in net outflows as a group in the first five months of the year. “There has been a reprieve in the outflows from some macro managers in May, with some large new allocations indicating there is belief in certain products’ ability to right the proverbial ship,” eVestment continues. “While outflows in prior months were highly targeted, inflows in May were a bit more widespread, a generally positive sign for the group after a difficult few months.”

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

Nordic Private Markets Modernize with Data-Centric Trade Lifecycle Automation

By Anders Stengaard Jensen at Indus Valley Partner: In recent years, asset managers in Nordic countries have accelerated efforts to modernize trade operations, particularly...

Norwegian Hedge Fund Industry Sees Major Boost with New Launch

The Swedish and Danish hedge fund industries remain closely matched in size, with Denmark recently edging ahead of Sweden. While still less than half...

Atlant Funds Hold Up in May Despite Mistimed Market Call

Macroeconomic and market forecasts are notoriously difficult, even for experienced hedge fund managers. What matters more than being right, however, is ensuring that incorrect...

Origo SELEQT Earns Top Morningstar Rating at Three-Year Mark

Origo Fonder launched its long-only fund, Origo SELEQT, in March 2022, exactly one month after Russia’s invasion of Ukraine. The launch coincided with the...

Split on Stops

Simply put (maybe), stop-orders are designed to exit a position when it moves against the trader beyond a predetermined threshold. Stop orders can be seen to be the...

Visio Allocator Deepens Tech Expertise

Visio Allocator Fund, a Finland-based multi-asset, multi-strategy fund, has strengthened its portfolio management team with the addition of technology specialist John-Axel Stråhlman, who joined...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.