Tuesday, 21 October 2014
Last updated 6 hours ago
Aug 10 2011 | 11:50am ET
Hedge funds ended the first half with their sixth-straight monthly inflow. But the second half may be shaping up quite differently.
The hedge fund industry took in $3.8 billion in net inflows in June, bringing total first-half inflows to $73 billion, the best in four years. But total hedge fund assets actually declined in June, the average hedge fund's second straight month of performance losses, by some $16 billion to $1.806 trillion, according to BarclayHedge and TrimTabs Investment Research.
"Investors were very kind to hedge funds in the first half of the year," BarclayHedge's Sol Waksman said. But, he warned, "we wonder if strong inflows will persist through the remainder of the year in light of the recent bloodbath in equities."
Much of the new money pouring into the industry has skipped stocks, however: Investors added $15.1 billion to fixed-income funds, the second-best inflow of any hedge fund strategy. Not surprisingly, such funds have also posted the second-best performance this year.
TrimTabs' Minyi Chen, however, echoed Waksman's concerns, noting that, "We see lopsidedness between performance and flows regularly in not only our hedge fund flow data but also our retail and institutional flow data," Chen said. "These imbalances are predictive more often than not."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...