New Money Streams Into Hedge Funds, Industry Up To $1.225 Trillion

Jul 21 2006 | 5:42pm ET

New money poured into hedge funds at a dizzying pace during the second quarter, according to Hedge Fund Research. The funds raked in $42.1 billion in new investments during the quarter, bringing total assets in the industry to a whopping $1.225 trillion. HFR reported that investors were lured into hedge funds by their strong performance in Q1. The inflows are the largest on record for any quarter since HFR began tracking them in 2003.

Equity managers were the biggest asset gatherers, pulling in more than $13 billion in new money during the quarter. Global macro managers came in second in terms of new money, seeing inflows of $8.4 billion, while event-driven strategies lured $4.8 billion, according to the Chicago-based research firm. Meanwhile, fixed-income arbitrage strategies saw the biggest outflows, losing $164 million in assets for the quarter.

Funds-of-hedge funds also saw new money streaming their way. The funds pulled in $15.6 billion, while during Q1 they attracted less than half of that ($6.4 billion).


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

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.