September Hedge Fund Inflows Slow

Nov 6 2007 | 2:54pm ET

Investors spooked by the subprime mess and hedge fund meltdowns showed their disdain for the industry last month. According to TrimTabs Investment Research and BarclayHedge, hedge funds posted an estimated inflow of $18.6 billion in September, which is the third-lowest inflow of 2007.
 
“The credit crunch and well-publicized meltdowns at several hedge funds seem to have made investors more wary of hedge funds,” said TrimTabs Chief Executive Officer Charles Biderman. He added that the September inflow into hedge funds “was equal to only half of the average monthly inflow of $34 billion from January through July.”
 
Of the estimated $18.6 billion inflow, $357 million went into funds of hedge funds, while direct investments into hedge funds were an estimated $18.2 billion.

Investors gravitated toward emerging markets hedge funds, lavishing that group with $11.4 billion, or 61%, of the total inflow. Conversely, equity market neutral shops saw an estimated outflow of $3.5 billion. 

“As usual, flows followed performance,” said Biderman. “The emerging markets category was the best performer in September, surging 5.7%, and its gain of 14.3% in the first three quarters of 2007 was the second-highest of all hedge fund categories.”
 
But don’t be fooled by the apparent slowdown of inflows into hedge funds. For the first nine months of the year, hedge funds gained assets of an estimated $237 billion, which is more than double the $100 billion invested in U.S.-listed equity mutual funds and more than triple the $73 billion invested in U.S.-listed equity ETFs.

 

 


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.