Hedge funds netted $8.1 billion in net inflows in May, continuing their perfect run of positive flows this year.
Despite the increase, industry assets were flat in May as most hedge funds suffered losses on the month, BarclayHedge and TrimTabs Investment Research said. Hedge funds managed $1.79 trillion at the end of May.
"The industry hauled in $75 billion in the first five months of 2011, which marks the heaviest such inflow since 2007," said BarclayHedge founder Sol Waksman. "Performance, however, has hardly been stellar. The Barclay Hedge Fund Index shows a year-to-date return of just 2.1% through May, and many managers are in the red for the year."
Investors poured a net $4.5 billion into commodity hedge funds in May and $1.4 billion into fixed-income funds.