Hedge Funds Attract $9B In October

Nov 22 2013 | 7:51am ET

Investors were still showing a lot of love for hedge funds in October, pouring an estimated $9.3 billion into the investment vehicles.

Performance gains of 1.74%—the best since December 2010—brought industry assets under management as of end-October to $2.8 trillion, reports eVestment.

Equity hedge funds attracted more investment than credit strategies for only the second month in 2013 and their year-to-date totals are now positive—their first year of positive flows since 2010.

Looking at the October flows by individual strategy, broad multi-strategy funds attracted the most money in October, at $5.34 billion, followed by long/short equity funds with $2.45 billion and event-driven funds with $1.10 billion.

No other strategy managed more than $1 billion, but market neutral funds were in the black, adding an additional $0.67 billion; as were directional credit funds ($0.59 billion); convertible arbitrage funds ($0.31 billion); relative value funds ($0.12 billion); and distressed funds ($0.04 billion).

The only strategies to lose assets in October were managed futures, down $1.45 billion, and MBS strategies, down $4.01 billion.

By region, European funds attracted $2.86 billion in October and Asian funds $0.50 billion while Americas funds lost $0.41 billion. Generally, global markets funds added $6.12 billion while emerging markets funds added $1.75 billion (completing a three-month string of inflows, a feat not seen since early 2010, said eVestment).

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