Hedge funds pulled in $17.5 billion in November (0.9% of assets), their highest inflows in six months, according to BarclayHedge and TrimTabs Investment Research.
“The hedge fund industry has taken in a net $66.9 billion in 2013, a healthy turnaround from an outflow of $8.2 billion in the same period in 2012,” said Sol Waksman, president and founder of BarclayHedge, in a statement. Hedge funds had net inflows in nine of the first 11 months of 2013.
Industry assets added 17% in 2013, hitting a five-year high of $2.1 trillion, still shy of the all-time peak of $2.4 trillion in June 2008.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report said the industry gained 0.8% in November, underperforming the S&P 500, which gained 3.1%. Equity long only hedge funds gained 2.3%, adding to October’s 1.9% gain. Equity long bias funds gained 1.6%, down from a 2.3% gain in October.
Funds of hedge funds took in $1.9 billion (0.4% of assets) in November, reversing course after redeeming $1.1 billion October. Funds of funds added assets in just three of the past 24 months. By contrast, the hedge fund industry posted inflows in 15 of the past 24 months.
As for market sentiment, the data provider said its most recent survey of hedge fund managers found a plurality bullish on the S&P 500's prospects for January with nearly two-thirds expecting equities to outperform bonds and precious metals over the next six months, and the same number expecting developed markets to outstrip emerging or frontier markets over that period.