Hedge Fund Flows Flat In May

Jun 21 2013 | 11:15am ET

Hedge fund investor flows were “effectively flat” in May, according to the latest data from eVestment.

Net redemptions and allocations resulted in no material change in industry assets under management in May while performance gains added little during the month as the losses of a few large funds had a significant impact on asset-weighted performance.

Industry AUM rose $2.3 billion to $2.705 trillion in May, with net flows a negative $2.2 billion. Funds of funds lost almost $25 billion in Q1 2013 and have now seen outflows for the past eight quarters.

Equities hedge fund flows were positive and credit fund flows negative in May for the first time since March 2010. During that 16-month period, equities funds saw $31.7 billion net outflows and credit funds received about $101.1 billion in net inflows.

Macro strategies and managed futures seem to have fallen afoul of investors, with the former losing $5 billion in May and the latter shedding $7.2 billion. Managed futures funds have bid farewell to $21.5 billion year to date.

Distressed and event driven funds saw their AUM increase by $2.1 billion and $3.1 billion, respectively, in May, thanks to investor inflows. Commodity funds attracted $2.5 billion in May.

Emerging markets funds have stemmed asset outflows—having lost $38.9 billion from July 2011 to October 2012, averaging almost $2.5 billion per month, outflows slowed to $180 million per month from November 2011 to May 2013, for a total loss of $1.2 billion.

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