Saturday, 29 August 2015
Last updated 15 hours ago
Apr 19 2012 | 12:35pm ET
Investors flooded into hedge funds in the first quarter, sending industry assets back above pre-crisis levels.
The industry took in $16 billion in net inflows in the first three months of the year, according to Hedge Fund Research. Along with performance gains, that pushed total hedge fund assets up to $2.13 trillion.
The new total tops both the industry's pre-crisis asset level and the record of $2.04 trillion set at the middle of last year.
Relative value and macro strategies were most popular among investors, taking in $12.4 billion and $7.8 billion, respectively. Larger managers were also favored during the first quarter; those with more than $5 billion in assets saw net inflows of $18.3 billion.
Equity funds and smaller hedge funds did less well. The former suffered net redemptions of $2.9 billion. Hedge funds with less than $5 billion in assets lost $2 billion to redemptions. Event-driven funds were also losers, suffering net withdrawals of $940 million.
"Investors responded favorably to the risk-shifting which occurred across financial markets in the first quarter," HFR President Kenneth Heinz said. "Sophisticated institutional investors are increasingly allocating to hedge funds as a powerful strategic portfolio complement to existing traditional holdings."
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…