Hedge Funds Net $4.7B In November

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.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR