Investors Favor Funds Of Hedge Funds In October

Dec 7 2007 | 12:09pm ET

Amid this year’s market turmoil funds of hedge funds apparently seem a better bet to investors than single-manager offerings. Investors yanked $2.8 billion in direct hedge fund investments in October while pouring $18.8 billion into funds of hedge funds.

The flows, reported yesterday by TrimTabs Investment Research and BarclayHedge, came during the best month for hedge funds in years.

“The hedge fund industry’s 3.5% return in October was the highest in the past seven years,” BarclayHedge’s Sol Waksman said. “Nevertheless, recent market turmoil has made investors a bit more cautious about investing in hedge funds.” And, of course, the numbers don’t take into account the major dive suffered by most hedge funds last month.

Fixed-income hedge funds faced the biggest redemptions, as investors fled with about $2.2 billion. On the other hand, what new money that did enter single-manager funds went the right place: Equity-market neutral funds added $3.7 billion in October. The strategy was among the few—if not the only—to post a positive return last month.

Overall, hedge funds and funds of hedge funds have added $279 billion in assets this year, a record.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note