Best And Worst: Hedge Fund Flows Follow Performance

Nov 14 2012 | 11:58am ET

The hedge fund industry has seen volatile flows over the past two years—with the exception of the very best funds out there.

The top-performing decile of hedge funds have helped themselves to twice their share of positive hedge fund flows since the beginning of last year. The group took in more than $10 billion of the $49.1 billion that investors have added to hedge funds between January of last year and September of this year, according to BarclayHedge and TrimTabs Investment Research.

"The top hedge funds accounted for 21.4% of the hedge fund industry's flows," TrimTabs CEO Charles Biderman said.

Equally unsurprising, the bottom decile of hedge funds in terms of performance bled assets over the same period, losing $6.4 billion to withdrawals.

During those 21 months, the top 10% of hedge funds enjoyed a median return of 27.8%. The bottom 10% suffered a median decline of 25.6%.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of