Thursday, 24 July 2014
Last updated 2 hours ago
Nov 9 2010 | 12:13pm ET
The hedge fund industry grew by 2.5% in September to reach $1.62 trillion, the most it has managed in six months.
Commodity trading advisers were the biggest beneficiaries of the inflows, according to TrimTabs Investment Research and BarclayHedge, taking in $5.8 billion on the month. The entire industry grew by just $3.8 billion in September.
Fixed-income hedge funds also saw big inflows, adding $1.3 billion on the month. By contrast, long-only equity funds and emerging markets funds suffered net outflows of $829 million and $269 million, respectively. And investors continued to abandon funds of hedge funds, pulling $635 million from the vehicles.
Separately, Nomura Holdings reports that the last three years have not been kind to quantitative hedge funds. Such funds manage 43% less than they did in 2007, halving their share of the actively-managed equity hedge fund market..
Most of the decline was due to poor performance, which amounted to 24% of the loss. The rest, however, was the result of investors fleeing that poor performance.
"We saw quants win new mandates in the first half of 2010, perhaps a bit of a sign of leveling-off of the outflows in 2010," Nomura's Inigo Fraser-Jenkins told Bloomberg News. "The problem is that since then, over the summer, their performance has suffered and that may give a bit of a knock to their ability to win mandates."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…