- Advertisement -
- Advertisement -

Related

New High in Hedge Fund Assets

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – The global hedge fund industry’s assets continued their upward trajectory for the seventh consecutive quarter, surpassing the previous high of $4.3 trillion set in the first quarter of this year, with an increase of about $11 billion, according to HFR. This growth in hedge fund capital during the second quarter was primarily driven by performance-based gains, supported by inflows into relative value arbitrage and macro strategies, which partly offset outflows in equity hedge and event-driven strategies.

“Total hedge fund capital extended the recent gains with a more moderate gain in 2H, though still eclipsing the previous quarter record, increasing total global capital further above the $4.3 trillion milestone,” states Kenneth J. Heinz, President of HFR. “Despite the continuation of the increasing trend, the composition of the growth and investor preferences by strategy shifted from the prior quarter with fixed income, credit, arbitrage, multi-strategy and macro funds leading recent asset increases,” he elaborates. “Even more so than the prior quarter, managers remained focused on unprecedented geopolitical and election risks and opportunities, with these not only including geopolitical/military conflict, but also including ongoing volatile inflation, interest rates and macroeconomic considerations which have dominated the past two years.” 

“Total hedge fund capital extended the recent gains with a more moderate gain in 2H, though still eclipsing the previous quarter record, increasing total global capital further above the $4.3 trillion milestone.”

Kenneth J. Heinz, President of HFR.

Most inflows in the second quarter went to smaller and new firms, which received net inflows of $3.0 billion. Conversely, the industry’s largest firms managing more than $5 billion experienced estimated net outflows of $5.7 billion during the quarter, while mid-sized firms managing between $1 and $5 billion experienced net outflows of $6.7 billion. Year-to-date, however, the largest firms recorded inflows of $8.7 billion in the first half of the year, while firms managing less than $1 billion received estimated net inflows of $3.5 billion. Medium-sized firms faced estimated net outflows of $5.0 billion in the same period.

Kenneth Heinz suggests that the second quarter dynamics in inflows across strategies reflect increasing risks and a more balanced risk sentiment compared to the first quarter. Managers navigated thematic micro-cycles driven by shifting expectations for election results, policy changes, trade impacts, interest rate and inflation expectations, and the tension between extended equity valuations and the potential for continued growth. “Investors and institutions are likely to increase commitments to managers positioned for these historic uncertain conditions and which have successfully navigated these cycles over the past year, with institutional investors seeking both access to these opportunities while protecting portfolios from volatility and risk,” concludes 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

Hedge Funds Pay Off for the State Pension Fund of Finland

Finland’s largest institutional investors remain committed allocators to hedge funds, yet the State Pension Fund of Finland’s (VER) hedge fund allocation stood out as...

Carl Berg to Lead Niam’s Capital Formation Efforts in Sweden

Private markets firm Niam Group has strengthened its Capital Formation and Investor Relations team with the appointment of Carl Berg as Capital Formation Director...

Statistical Outlier Year for HCP Black

When HedgeNordic spoke with Tommi Kemppainen in early 2019, the CEO of Helsinki Capital Partners outlined a defensive positioning for the multi-strategy fund HCP...

Nordea Adds Systematic Fixed Income Expertise

Nordea Asset Management (NAM) has strengthened its data-driven investment capabilities with the addition of two London-based professionals, Lucette Yvernault and Marton Huebler, marking the...

From Short-Term Opportunity to Long-Term Outperformance

Borea Utbytte, a banking sector-focused equity fund under Norwegian boutique Borea Asset Management, celebrated its five-year anniversary at the turn of September to October....

Record Month for Tidan in Priced-to-Perfection Credit Market

Tidan Fund, a Stockholm-based hedge fund specialising in opportunities across corporate capital structures, marked its four-year anniversary in September with its strongest month on...

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.