Sunday, 21 December 2014
Last updated 14 hours ago
Jan 18 2007 | 3:14pm ET
Burned by poor performance and shaken by the Amaranth Advisors fiasco, investors stanched the flow of new money into hedge funds in the fourth quarter, though it was still a record-setting year for inflows.
Hedge funds added $15.8 billion over the past three months, a 64% drop from the $44.5 billion raised in the third quarter, Hedge Fund Research reports. But hedge funds had already rebounded strongly from its first outflow in a decade in the final quarter of 2005, and net deposits for the full year were $126.5 billion, compared with $46.9 billion in 2005.
At the end of 2006, hedge funds managed $1.43 trillion, a 29% jump from the prior year, HFR said.
Not surprisingly, top-performing strategies were also the best at attracting new cash. Event-driven funds took in $3.9 billion in the fourth quarter, the second-highest total behind equity hedge funds, which raised $8.7 billion.
Funds of hedge funds ended the year increasing their assets for the fourth straight quarter, adding $3.89 billion over the past three months, bringing their global total $547 billion.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.