Hedge Funds Attract $3.25B In February

Mar 27 2012 | 8:48am ET

Investors poured about $3.25 billion into hedge funds in February, the first month of inflows since August 2011, bringing total assets under management in the industry to $1.75 trillion.

The Dow Jones Credit Suisse Hedge Fund Index was up 1.61% in February, with nine of the 10 strategies followed in the black

Convertible arbitrage and managed futures strategies saw the largest asset inflows on a percentage basis in February, at 0.97% and 0.64%, respectively, from January 2012.

Directional strategies, such as long/short equity, generated positive returns for the second month in a row. Managers noted that the market appeared to trade more on fundamentals as stock correlations declined and stock prices reacted in line with post earnings announcements;

Global macro managers and managed futures funds posted gains thanks to positive market sentiment driven by further global monetary easing and better-than-expected macroeconomic data.

Fixed-income arbitrage managers posted gains as managers have, in some instances, been able to benefit from the risk-on environment through model convergence trades as volatility compressed over the course of the month.

 


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...