Eurekahedge: Industry AUM Growth Strong Through Midyear

Jul 18 2017 | 9:54pm ET

Nearly three-quarters of fund managers are in positive territory for the year to date through June, while another 18% have outperformed the MSCI AC World Index (Local) for the period, according to new research from Eurekahedge, helping keep capital flowing back into the alternative asset class. 

For the comparable period last year, only 56% of the managers were in the green, although some 65% of managers had outperformed the MSCI AC World Index (Local) through midyear, Eurekahedge added.

Key highlights from Eurekahedge’s July report:

  • Net inflows for the first half of 2017 totaled $55 billion, the company’s data shows. North American and European mandates accounted for  $40 billion and $12 billion of net investor flows respectively, while emerging market mandates pulled in $4.1 billion.
  • Investors' appetite for hedge funds continues to improve. Smaller managers with $100 million to $500 million in AUM have raised almost $20 billion this year, while the billion-dollar club has accounted for $32 billion in inflows. For comparison, redemptions totaled $70 billion in 2H/2016
  • AUM for long/short equity hedge fund managers grew by $23.5 billion in the first half of the year on the back of strong performance-based gains. Long/short equities hedge fund managers are up 5.24% for the year, with equity-long bias funds gaining 8.11% for the year
  • As of the end of June 2017, Asian hedge funds have recorded AUM growth of $8.1 billion, with $5.8 billion accounted for by performance-based gains while the remainder, roughly $2.3 billion, has come through net investor allocations. Asia ex-Japan managers are up 9.24% for the year with underlying Greater China and Indian managers up 12.61% and 14.99% respectively. Japan focused funds are up 4.68% over the same period. 
  • The $524.2 billion European hedge fund industry grew its AUM by $18.3 billion through the first half, following a steep contraction in AUM of $29.3 billion in 2016. Managers investing with a dedicated European mandate are up 4.14% for the year following a flat gain of 0.19% in 2016. 

Launched 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. The company is headquartered in Singapore with offices in New York and Philippines.

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