Thursday, 31 July 2014
Last updated 39 min ago
Jan 8 2013 | 9:45am ET
Hedge funds pulled in a net $4.7 billion in November (0.3% of assets), according to the latest numbers from BarclayHedge and TrimTabs Investment Research.
The November results, based on data from 2,935 funds. followed a $10.3 billion outflow in October.
The TrimTabs/BarclayHedge Hedge Fund Flow Report also showed that hedge funds outperformed the S&P 500 in November (a feat they accomplished rarely in 2012) earning 0.6% to the S&P's 0.3%. The gain marked the second consecutive month in which hedge funds outperformed the stock market.
“Two months of outperformance signal a notable shift from the dominant trend of the past 12 months, when the industry gained 6.2% while the S&P 500 rose 13.6%,” said Sol Waksman, founder and president of BarclayHedge.
Although returns and cash flow improved in November, the past 12 months have not been so kind. Industry outflows totaled $21.2 billion (1.2% of assets) from December 2011 through November 2012, a sharp reversal compared with the previous 12-month industry inflow of $61.9 billion. TrimTabs and BarclayHedge reported that while the industry lost assets last year, top-performing hedge funds continued to gain assets over the same time period.
Of the 13 hedge fund categories traced by BarclayHedge, emerging markets funds performed best in November, gaining 1.3%. Distressed securities funds had the best 12-month returns, gaining 10.0%.
TrimTabs/Barclay also polled 60 hedge fund managers and found they “overwhelmingly” expect the S&P 500 to rise in 2013 but few expect it to reach last year's heights. Managers expect financial and industrial stocks to be the top two sectors this year.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…