- Advertisement -
- Advertisement -

Setting New Records

- Advertisement -

Stockholm (HedgeNordic) – Global hedge fund assets rose to a record $3.8 trillion at the end of the first quarter, up $844 billion over the past four quarters after falling below $3 trillion in the first quarter of last year, writes industry tracker Hedge Fund Research. Total hedge fund capital increased $201 billion from the start of the year as the industry enjoyed its best first-quarter performance since 2000.

The first quarter of 2021 saw the global hedge fund industry receive an estimated $6.1 billion in net inflows, bringing the total net inflows since the third quarter of 2020 to $22.1 billion. Most of the investor inflows went to the industry’s largest firms, with an estimated $5.3 billion of the $6.1 billion going to firms managing more than $5 billion. Mid-sized firms managing between $1 billion and $5 billion experienced a net outflow of $1.4 billion on aggregate during the first quarter, while firms managing less than $1 billion collectively attracted $1.14 billion in net inflows.

“Hedge funds effectively navigated a volatile trading environment to the strongest 1Q gain in over 20 years, driving inflows and capital increases to a record global capital level of $3.8 trillion.”

“Hedge funds effectively navigated a volatile trading environment to the strongest 1Q gain in over 20 years, driving inflows and capital increases to a record global capital level of $3.8 trillion,” Kenneth J. Heinz, President of HFR, wrote in a press release last week. “The trading environment was dominated not only by the new US presidential administration, new stimulus measures, developments in vaccine administration and new virus variants, but also intense volatility in cryptocurrencies and associated with a surge in interest in out of favor, heavily shorted, deep value equities from retail investors and trading platforms,” he added.

“Leading institutional investors interested in defensive, opportunistic exposures to each of these are actively working to increase portfolio exposures to leading and innovative hedge funds which have and continue to navigate these rapidly shifting market dynamics.”

“Each of these, as well as evolving macroeconomic and geopolitical dynamics, represent both a risk and an opportunity for specialized hedge funds actively positioning in these areas,” continued Heinz. “Leading institutional investors interested in defensive, opportunistic exposures to each of these are actively working to increase portfolio exposures to leading and innovative hedge funds which have and continue to navigate these rapidly shifting market dynamics.”

The HFRI Fund Weighted Composite Index (FWC), an equal-weighted index of single-manager funds reporting to the HFR database, gained 6.0 percent in the first quarter of this year, the strongest first-quarter performance since 2000. On an asset-weighted basis, the global hedge fund industry was up 2.7 percent in the first three months of 2021. Cryptocurrency hedge funds led the performance in the first quarter of 2021, surging 120 percent for the quarter.

 

Image by Gerhard G. from Pixabay

close

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

Most Popular This Week

Request for Proposal

- Advertisement -

Latest Articles

Expected 75 Point Hike in Riksbank Rate

Stockholm (HedgeNordic) – Sweden’s Riksbank raised the key interest rate by an expected 75 basis points to 2.5 percent, the highest level since 2008....

The Age of Macro is Back

Stockholm (HedgeNordic) – In recent years, fixed-income macro managers such as Carlsson Norén have struggled to deliver attractive absolute returns in a low-volatility environment...

Man AHL Launches its First Systematic Article 9 Fund

Stockholm (HedgeNordic) – Man Group’s quantitative investment arm and engine, Man AHL, has launched the asset manager’s first systematic Article 9 fund. Relying on...

Corporate Bonds are Very Attractive Finds Atlant Fonder

Stockholm (HedgeNordic) – This year’s broad sell-off in the bond market due to aggressive monetary tightening in the fight against inflation may have investors...

Afalon’s Holistic Approach Amid Fund Closure

Stockholm (HedgeNordic) –  Finnish asset manager Afalon Investment Management has called time on its hedge fund that sought to identify investments aligned with sustainability...

HedgeNordic’s CTA Roundtable Back in the Flesh

Stockholm (HedgeNordic) – On November 17, 2022, HedgeNordic hosted its traditional, annual CTA roundtable in Stockholm. After two years in a virtual format, it...