Hedge Funds Take In $3.8B In Sept.

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."


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of