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Hedgies Lure New Money

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Stockholm (HedgeNordic) – After ending a nine-month run of net inflows in December due to investor profit-taking, tax-harvesting and rebalancing at year-end, the global hedge fund industry resumed attracting capital in January with net inflows of $11.3 billion, according to BarclayHedge. The industry’s assets under management continue to hover around $4.8 trillion as the industry experienced about $117.9 billion in trading losses during January.

Source: BarclayHedge. Assets under management (AUM) are calculated independently of flows and reflect new funds added to the database in January 2022. Hedge fund AUMs and flows as presented in this report do not include managed futures (CTA) AUMs and flows.

“End of year profit-taking, tax-harvesting and rebalancing in December 2021 broke an impressive nine-month run of net inflows to the hedge fund industry. Happily, January marked a return to net inflows, albeit in a somewhat more circumspect manner,” says Ben Crawford, Head of Research at BarclayHedge. “Investors gave over an additional $11.29 billion to managers on the month,” he elaborates. “It is notable, however, that January 2022’s net inflows were less than 40% of the industry’s uptake a year ago and also well below the mean monthly inflow from 2021.”

“End of year profit-taking, tax-harvesting and rebalancing in December 2021 broke an impressive nine-month run of net inflows to the hedge fund industry. Happily, January marked a return to net inflows…”

Multi-strategy funds enjoyed the highest net inflows as a group in January this year, attracting an estimated $9.2 billion, according to the Barclay Fund Flow Indicator published by BarclayHedge. Emerging Markets – Asia funds and sector-specific funds attracted net inflows of $2.9 billion and $2.6 billion, respectively. Among the hedge fund sub-strategies recording net redemptions in January, balanced funds experienced the largest net redemptions with $2.4 billion in outflows. Emerging Markets – Global funds and fixed-income funds incurred net outflows of $1.8 billion and $914 million, respectively.

The managed futures industry posted its third consecutive month of redemptions in January with $1.4 billion in outflows. Although three of the four CTA sub-sectors picked up assets during the month, those gains were overshadowed by net outflows in the largest sub-sector comprised of systematic traders.

Most hedge fund sub-sectors tracked by BarclayHedge enjoyed net inflows over the 12-month period ending January. 13 of the 19 hedge fund sub-sectors tracked by BarclayHedge picked up assets over the 12 months ending January, with fixed-income funds leading the way in U.S. dollar terms by adding $60.7 billion. Multi-strategy and sector-specific funds followed suit, receiving net inflows of  $44.7 billion and 38.4 billion, respectively, during the 12 months ending January.

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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

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