HFN: Hedge Fund Assets Reach $2.6 Trillion

Aug 21 2007 | 10:13am ET

Total hedge fund assets climbed steadily in the second quarter despite correction in the credit market.

Hedge fund assets increased by 8% in the second quarter to $2.6 trillion, from $2.4 trillion at the end of March, according to the latest figures from the HFN Hedge Fund Industry Asset Flow Report.

New asset inflows accounted for some $107.3 billion in the second quarter while performance gains comprised an additional $89.6 billion, the second largest gains on record.

According to HFN, long/short equity assets increased by 7.7% to $766.5 billion. In the first half of 2007 long/short equity funds attracted $48 billion in new allocations. On the contrary, the growth for fixed- income focused hedge funds slowed in the second quarter as liquidations increased and performance lagged.

After increasing by the fastest rate on record in the first three months of 2007, total asset growth in fixed-income hedge funds slowed to 5.5%, with assets reaching $468.5 billion including 23.2 billion in new allocations in the second quarter. As a result of losses stemming from the sub-prime debacle, fixed income funds experienced near-record liquidations of $3.9 billion in the quarter, while performance gains added $5.4 billion, its smallest quarterly contribution to asset growth since 2005.

Other hedge fund strategies experiencing growth last quarter include emerging hedge market funds, which attracted $279.3 billion, including
$20.9 billion in new allocations, global macro funds ($131.8 billion), multi-strategy funds ($22.8 billion), and distressed funds ($9.5 billion).

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…