- Advertisement -
- Advertisement -

Hedgie Assets are Flowing Back

- Advertisement -

Stockholm (HedgeNordic) – Investors poured $7.4 billion into hedge funds during the month of August, continuing the industry’s asset recovery journey following four consecutive months outflows from March through June. Investors added an additional $9 billion to the hedge fund industry in July, according to eVestment.

Despite enjoying two consecutive months of net inflows, year-to-date asset flows are still well into negative territory after the hedge fund industry registered strong outflows in the first half of 2020. On a year-to-date basis, the industry recorded $37.6 billion in net redemptions through the end of August. According to eVestment’s latest hedge fund asset flows report, the hedge fund industry has $3.197 trillion under management.

According to eVestment, the volume of inflows in August was light but well disbursed, as most funds tracked by eVestment enjoyed asset inflows during the month. “August was generally a broadly positive month for the hedge fund industry, though there were pockets of large redemptions clouding the picture,” says Peter Laurelli (pictured), eVestment’s Global Head of Research. “The proportion of funds with inflows was nearly 60%, which would make August 2020 the second most broadly positive month for hedge fund asset flows in the past five years.”

Macro hedge funds enjoyed the highest volume of asset inflows in August, marking the second consecutive month of net inflows for the group. Despite receiving $2.8 billion in net inflows last month, year-to-date net redemptions from macro funds are still significant at $13.3 billion due to outflows during the February-to-April period. “The largest redemptions came from funds which have mostly underperformed, with the five largest outflows being from funds which have each underperformed the average of their peers in 2020,” writes eVestment.

Net capital flows for managed futures vehicles were positive for a third consecutive month, with the group amassing a net $1.8 billion in August. According to eVestment, about 60 percent of the universe received net inflows last month. On the other hand, long/short equity funds continued their long-running losing streak in terms of asset outflows. Investors pulled $1.9 billion from long/short equity funds in August, taking the year-to-date net outflow figure to $12.4 billion. Investors redeemed an additional $44.5 billion from these funds in 2019.

According to eVestment, “there are few concentrated redemptions within long/short equity heavily influencing the group’s overall flow picture.” Underwhelming performance on the part of some long/short equity players is mainly driving the redemption wave. “Just looking at August, the primary drivers of redemptions have returned an average of -16.5% in 2020, while the primary drivers of inflows have returned +14.7% through August,” writes eVestment.

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

First Non-Swedish Family Office Investment for Protean Small Cap

Stockholm (HedgeNordic) – About one year after the successful launch of their long/short equity fund Protean Select, Pontus Dackmo and Carl Gustafsson introduced a...

Atlant Högräntefond Leads Peers on Third Anniversary

Stockholm (HedgeNordic) – Around mid-March 2021, Swedish hedge fund boutique Atlant Fonder launched a UCITS-structured fixed-income fund investing in Nordic corporate bonds, drawing from...

Rhenman Welcomes Brummer & Partners Sales Veteran

Stockholm (HedgeNordic) – After close to 18 years as an institutional sales professional at Brummer & Partners, Tom Josephson is set to join healthcare-focused...

Untapped Potential in Symmetry’s Small-Cap Portfolio

Stockholm (HedgeNordic) – Small-cap-focused hedge fund Symmetry Invest has achieved an annualized return of around 20 percent over the past five years and over...

Navigating Asia-Pacific’s Transition to Sustainable Growth

Stockholm (HedgeNordic) – Emerging markets in the Asia-Pacific region, such as China, India, Indonesia, the Philippines, Thailand and Vietnam, have experienced significant economic expansion...

The Performance of US Equities in Election Years Over the Last Century

By Daniel Ung, Kartik Chawla, and Jędrzej Miklaszewski – SPDR: The 2024 US presidential election is on the horizon, and investors are keen to...

Allocator Interviews

Latest Articles

In-Depth: Emerging Markets

Voices

Request for Proposal

- Advertisement -