Hedge Fund AUM Hit Record $3T

Jun 25 2014 | 10:05am ET

Hedge fund assets under management have crossed the $3 trillion threshold for the first time on record, according to new data from eVestment.

The figure represents an all-time high, surpassing the industry's previous Q2 2008 peak, and is the result of both new allocations—$22 billion in May, $93.3 billion year to date—and performance gains, which added $37.8 billion to total AUM in May.

Equity funds continue to register high inflows, a trend that has persisted since June 2013. Investors poured $11.5 billion into equity strategies in May, bringing YTD allocations to $59.4 billion.

Investors also seem to have rediscovered alternative credit strategies: after six months of mixed flows, such funds attracted $8.4 billion in May. Meanwhile, their love affair with event-driven strategies continues unabated—investors poured $6.4 billion into them in May, over $4 billion of that into activist funds.

MBS strategies, which eVestment considers a bellwether for investor sentiment towards credit strategies generally, saw strong inflows of $1.5 billion in May. Such funds lost about $10.1 billion from June 2013 to March 2014, but seem to be on the rebound.

Macro hedge funds attracted $1.6 billion in May.

Managed futures strategies remain out of favor—May marked their ninth consecutive month of outflows as they bid farewell to $2.1 billion.

Regionally, investors put $8.3 billion into Americas funds and $1.2 billion into Europe funds while pulling $0.93 billion out of Asia funds and $0.14 billion out of emerging markets strategies.

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