Hedge Funds Attract 'Meager' $817M In March

May 8 2013 | 10:35am ET

Investors kept a tight hold on the purse strings in March, putting a 'meager' $817 million into hedge funds compared to February inflows of $11.4 billion, according to BarclayHedge and TrimTabs Investment Research.

Fixed Income and multi-strategy were the only strategies to post inflows in the past 12 months, said Sol Waksman, president and founder of BarclayHedge, in the latest Trimtabs/BarclayHedge Hedge Fund Flow Report.

The report, based on data from 3,409 funds, noted that the hedge fund industry continues to lag the S&P 500.

“The industry delivered a return of 1.1% in March, less than one-third of the S&P 500’s 3.6% rise. Although hedge funds delivered positive returns in 10 of the past 12 months, they trailed the S&P 500 by 450 basis points,” said Waksman.

As they did in the first two months of 2013, stock-picking hedge fund managers performed well in March, as equity long only hedge funds rose 3.3%, to lead the 13 major fund categories.

Funds of hedge funds continued to shed assets, losing $2.6 billion in February and $53.2 billion in the past 12 months. They underperformed the hedge fund industry by 230 basis points in the past 12 months.

The latest TrimTabs/BarclayHedge Survey of Hedge Fund Managers found managers are worried about the stock market’s prospects for May. Opinions on 10-year Treasuries and several other indicators suggest hedge fund managers are bearish.


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