- Advertisement -
- Advertisement -

Related

First Quarterly Inflows Since 2018

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – Hedge funds registered net inflows for the first time since the first quarter of 2018, according to a report released by Hedge Fund Research last week. Macro strategies led the hedge fund industry’s estimated net inflows of $13.0 billion in the third quarter, which brought the industry’s assets under management to $3.31 trillion.

“Investors allocated new capital to hedge funds in 3Q as a result of both defensive outperformance through the coronavirus-driven volatility in early 2020, as well as opportunistic gains through the uneven financial market recovery in the second and third quarters,” Kenneth J. Heinz (pictured), President of HFR, stated in last week’s report. “Hedge fund strategies which have demonstrated powerful, opportunistic and uncorrelated performance throughout 2020 are likely to lead continued industry growth into 2021.”

“Hedge fund strategies which have demonstrated powerful, opportunistic and uncorrelated performance throughout 2020 are likely to lead continued industry growth into 2021.”

Macro strategies led last quarter’s positive net flows to the hedge fund industry, with investors allocating an estimated $7.2 billion to this strategy group. The volume of net inflows was nearly equally split between CTA strategies and uncorrelated currency strategies. Quantitative-driven trend-following CTA strategies received net inflows of $3.2 billion during the third quarter, while currency-focused strategies received inflows of $3.1 billion. The broader macro strategy category had $579 billion in assets under management at the end of the third quarter, according to HFR. Fixed income-based relative value arbitrage strategies, meanwhile, attracted an estimated $5.5 billion in net inflows during the third quarter, increasing the group’s total capital to $903 billion.

According to HFR, last quarter’s inflows were mainly led by the hedge fund industry’s largest firms. Hedge fund firms managing more than $5 billion received an estimated $11.2 billion in net inflows during the three months that ended September, while firms managing less than $1 billion attracted net inflows of $2.6 billion. Mid-sized firms managing between $1 billion and $5 billion as a group recorded net outflows of $810 million during the third quarter.

“Institutions globally are making forward-looking allocations to hedge funds, anticipating and positioning for the near-term uncertainties of both the virus and the US election, as well as intermediate-term macroeconomic uncertainties of the US, European and Asian economies into 2021,” said Heinz.

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

Playing ‘Moneyball’ for Investors

Having managed the opportunistic hedge fund Pensum Global Opportunities under the Pensum Asset Management umbrella since 2022, Sector co-founder Peter Andersland has now established...

One Big Winner Lifts Accendo Into the Top Ten

When your portfolio holds six names, one big winner can move the needle in a major way. For Accendo Capital, September proved just that....

Slim Nordic Line-Up at HFM Awards

With Intelligence has revealed the shortlist for the HFM European Performance Awards 2025, featuring an unusually small number of Nordic hedge funds among this...

Record Gold, Rising Momentum

The NHX CTA Index gained in September 2025, supported by a broad-based trend environment. Most of the profits came from precious metals, as gold...

From Rocky Starts to Solid Returns and Milestones

Lynx Asset Management, best known for its flagship trend-following program Lynx, has in recent years expanded its product offering with the launch of Lynx...

Europe’s Infrastructure Transformation: Where the Smart Money is Going

Infrastructure is at the heart of Europe’s economic transformation. Richard Marshall, Head of Infrastructure Research at DWS, explores how subsectors like data centres, renewable...

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.