Saturday, 22 November 2014
Last updated 1 day ago
Mar 8 2010 | 1:15pm ET
Hedge funds enjoyed an unusual inflow in January, the 11th month in a row that investors added money to the industry.
The global hedge fund industry took in $7.1 billion in new money, bringing total assets to $1.5 trillion, according to TrimTabs Investment Research and BarclayHedge. Hedge funds now manage 23.6% more than they did at rock bottom in April.
“January bucked the trend,” BarclayHedge CEO Sol Waksman said. “The first month of the year typically delivers a redemption-driven outflow. The fact that hedge funds managed to attract money is a good sign.”
Funds of hedge funds, by contrast, took a big hit in January, as investors increasingly favor single-manager funds. Clients pulled money from multi-manager funds for the 17th of the past 19 months, with an outflow totaling $12.6 billion.
“Funds of funds have performed poorly,” Vincent Deluard, global equity strategist at TrimTabs, said. “They returned only 12.3% in the past year, less than half of the industry’s average 25.9% gain. That investors are walking away does not surprise.”
Investors flocked to distressed securities hedge funds in January, with inflows totaling 6.2% of assets. Multi-strategy funds, on the other hand, suffered the biggest outflow.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…