Saturday, 28 February 2015
Last updated 1 day ago
Feb 21 2014 | 9:12am ET
Hedge fund investors favored equity over credit in January for the fourth consecutive month, according to new research from data provider eVestment.
Asset flows between the two strategies deviated by the widest margin since pre-financial crisis in Q2 2007, as investors poured $13.8 billion into equities in January while redeeming $7.3 billion from credit strategies.
Overall, investors added about $4.9 billion to hedge funds in January, but performance losses of $12.8 billion resulted in a 0.3% decline in total industry assets under management, which stood at $2.85 trillion.
Winning strategies, in terms of attracting assets, in January included long/short equity ($8.45 billion), event-driven ($5.73 billion), broad multi-strategy ($4.68 billion), distressed ($0.43 billion) and market neutral ($0.13 billion).
Losing strategies included directional credit (which lost $0.16 billion), convertible arbitrage (down $0.32 billion), MBS strategies (down $1.17 billion), relative value credit (down $3.98 billion), macro (down $4.70 billion) and, the biggest loser in January, managed futures (down $5.06 billion).
By region, funds focused on the Americas gained $1.64 billion, Europe funds gained $4.46 billion, Asian funds lost $0.03 billion and global funds lost $1.13 billion. Emerging markets funds saw investors redeem $2.30 billion.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…