eVestment: Hedge Fund Assets Dip 2.5% in August

Sep 25 2015 | 6:20pm ET

August’s volatility trimmed more than just hedge fund performance, according to a new report from eVestment. It also trimmed assets. 

eVestment’s August 2015 Hedge Fund Asset Flows Report shows that total hedge fund assets decreased 2.50% in August 2015, bringing the industry’s total assets under management to $3.053 trillion.

However, investors added an estimated $10.5 billion into the industry in August, while performance decreased AUM by an estimated $78.4 billion.

Highlights of the report include:

  • Including the August inflow, investors have added an estimated $74.7 billion into hedge funds so far in 2015.  This compares to $113.9 billion through August of 2014. However, note that investors redeemed nearly $26 billion in the final four months last year.
  • There have been multiple reversals of apparent investor preferences throughout 2015, however the one consistent theme has been investors’ interest in multi-strategy products. 
  • As large multi-strategy products have peaked investors’ interest, August’s inflows of $6.6 billion brought YTD inflows to $48.6 billion, which surpasses full year 2015 allocations to this strategy.
  • Large multi-strategy products continue to dominate the asset raising environment.
  • Managed futures fund flows look set for their first negative month since December as investors digest recent losses. 
  • Investors added money to event driven strategies in August, another instance of investors deviating from prior month actions. The $1.7 billion inflow followed elevated outflows in July, which was the universe’s fourth monthly redemption in the last five months.
  • Flows into macro hedge funds cooled after six consecutive months of inflows.

Following elevated losses in China, eVestment also noted that investors appeared to take a step back from funds investing in Asia, pulling $540 million in August following six consecutive months of inflows in which investors allocated $7.5 billion into Asia-focused funds.

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