Eurekahedge: Hedge Funds Gain 0.99% in April, Assets Reach Record $2.21T

May 20 2015 | 2:10pm ET

A new report from Eurekahedge shows that hedge funds returned $59.5 billion in performance-based gains for the first quarter of 2015, their highest Q1 gains on record since 2006, as easy monetary policy in Japan and Europe continued to push regional equities into record territory.

The Eurekahedge Hedge Fund Index posted its fourth consecutive month of gains in April, returning 0.99%, compared to a 1.25% decline posted by the MSCI World Index and 1.38% gained by the NYSE Composite.

Total industry assets under management have reached a record high of nearly $2.2 trillion.

Globally, Asia ex-Japan funds delivered the best returns, up 8.26% in April, having grown their asset based by $12.8 billion since the start of the year. European hedge funds, meanwhile, are up 0.69% and have grown their asset base by $10.5 billion. This brings their current AUM close to a record high of $500 billion, noted Eurekahedge. 

Stylistically, long/short equity funds performed the best both in April and for 2015 year-to-date across all strategic mandates, returning 2.40% and 5.66%, respectively. 

Asset flows were mixed across the different hedge fund strategies, with long/short equities funds recording the highest net inflows of $3.2 billion while event-driven came in a close second, at $1.9 billion. Meanwhile, arbitrage and relative value experienced outflows as investors withdrew an additional $0.3 billion and $0.7 billion, respectively, from the aforementioned strategies.

North American managers have the lead in terms of geographic flows, recording $10.8 billion in new allocations, roughly one-third the level seen for the same period last year. Total assets in North American hedge funds are now more than $1.47 trillion mark, the highest level on record, Eurekahedge wrote.

Hedge funds with a Greater China mandate posted stellar gains on investor optimism related to aggressive stimulus measures introduced by the PBOC. The Eurekahedge Greater China Hedge Fund Index posted the best regional gain of 15.55% as of April 2015, followed by Japanese funds with gains of 1.89%.

In terms of 2015 year-to-date returns, Asia ex-Japan managers remained at the top, with returns of 13.41%, followed by European and Japanese funds at 4.78% and 3.18% respectively. North American and Latin American funds ended the four-month period with gains of 2.38% and 2.34% respectively. 

Latin American funds continue to see significant capital outflows from the region, with April being the tenth consecutive month of investor redemptions from Latin American hedge funds. Net asset outflows year-to-date totaled $1.4 billion, bringing total assets down to $56.7 billion – the lowest level in two years.

The Eurekahedge Report has beeb published monthly since October 2008, covering asset flows, hedge fund performance and regional key trends. The firm's database tracks more than 130 data points on more than 24,000 alternative funds 

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