Eurekahedge: Industry Assets Up $108B YTD As Hedge Fund Performance Recovers

Aug 15 2017 | 11:35pm ET

Asset flows to hedge funds continue to ride the sector’s performance recovery, according to new data from Eurekahedge, as nearly three-quarters of managers tracked by the company are in the green for the year and gains in industry-wide AUM stand at more than $108 billion through the first seven months of 2017.

Hedge funds booked a solid +0.88% gain in July, according to Eurekahedge’s August report released on Tuesday, with returns largely positive across the board and key regional metrics in the green for the period. The company’s Hedge Fund Index is up +4.27 YTD. 

Key highlights from the company’s August report:

  • Approximately 73% of fund managers are in positive territory year-to-date, while almost 15% posting double-digit gains.
  • Total hedge fund assets grew by $108.6 billion over the past seven months with $71.6 billion attributed to investor inflows while managers posted performance-based gains of $37 billion. The industry's total assets currently stand at $2.33 trillion.
  • AUM for the North American hedge fund industry has reached a record high of $1.56 trillion. Investor allocations for 2017 year-to-date stood at $46.5 billion, while $19.1 billion of performance-based gains were recorded over the same period of time. 
  • Smaller funds managing assets in the range of $100 to $500 million have raised almost $22 billion this year, while the billion dollar club has accounted for $44 billion in inflows as investor appetite for hedge funds continues to improve.
  • The $151.5 billion arbitrage-mandated hedge fund industry saw the highest net investor inflows of $13 billion among strategic mandates for 2017 year-to-date. Managers posted performance-based gains as of 2017 year-to-date totaling $3.8 billion.
  • As of July 2017, Asian funds have recorded a growth in AUM of $10.3 billion YTD, with $6.6 billion accounted for by performance-based gains while the remainder, roughly $3.6 billion, has come through net investor allocations. Asia ex-Japan managers are up 12.57% for the year, leading the table among strategic mandates, with underlying Greater China and Indian managers up 18.43% and 19.31% year-to-date, respectively. Japan focused funds are up 5.71% over the same period.

Launched in 2001, Eurekahedge is one of the world's largest independent data providers and alternative research firms. Headquartered in Singapore with offices in New York and The Philippines, the company specializes in global hedge fund databases and research and tracks more than 130 data points on more than 24,000 alternative funds.

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