Eurekahedge: Asset Flows Increasing As Investor Appetite For Hedge Funds Returns

Jun 21 2017 | 7:22pm ET

Helped by year-to-date returns of +3.28%, investor appetite for hedge funds has picked up pace since the start of the year, according to new data from Eurekahedge, and sent AUM for the North American hedge fund industry to a record high $1.55 trillion. 

Net inflows for year so far total $39 billion, Eurekahedge said in their latest research report, year following redemptions of $55.1 billion in 2016. 

Other highlights from the report: 

  • Since the Trump win in November last year, North American mandates have recorded a growth in AUM of $56.3 billion – $39.5 billion accruing from performance-based gains and $16.8 billion from net investor allocations.
  • AUM for long/short equities hedge fund managers grew by $19.1 billion over the year, with strength led by performance-based gains of $23.6 billion. Long/short equities hedge fund managers are up 4.99% for the year.
  • As of May 2017 year-to-date, Asian funds have recorded AUM growth of $6.6 billion, with $5.1 billion accounted for by performance-based gains while the remainder, roughly $1.5 billion, has come through net investor allocations. Asia ex-Japan managers are up 7.91% for the year with underlying Greater China and Indian managers up 10.80% and 15.35% respectively. Japan focused funds are up 3.13% over the same period.
  • The $516.4 billion European hedge fund industry has grown its AUM by $10.5 billion YTD as of May 2017, following a steep contraction of $29.3 billion last year. Managers investing with a dedicated European mandate are up 4.25% for the year following a flat gain of 0.19% in 2016. 
  • Sub-billion dollar hedge funds have recorded strong investor interest so far this year, with net inflows totaling $16.2 billion. Within sub-billion dollar hedge funds, mid-size funds managing between $100 million and $500 million have seen inflows of $14.3 billion, while billion-dollar hedge funds have pulled in $22.8 billion in new investor money so far this year.

Founded in 2001, Eurekahedge tracks asset flows, hedge fund performance and regional key trends across the hedge fund universe. The firm's database tracks more than 130 data points on more than 24,000 alternative funds across the hedge fund universe.

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