Hedge Fund Inflows Slow In March

May 12 2008 | 10:09am ET

Spooked investors slowed their hedge fund investments in March and turned in greater numbers to funds of hedge funds.

The industry saw inflows of $16.3 billion in March, according to BarclayHedge and TrimTabs Investment Research, down slightly from February’s $17.5 billion inflow—itself down $4 billion from earlier estimates of hedge fund inflows. All told, hedge funds added $41.2 billion in the first quarter, down 42% from the first quarter of 2007.

Investors added $4.2 billion to single-manager funds in March, just a quarter of the total industry inflows. In February, single-manager funds accounted for almost 40% of the month’s inflow.

What’s more, things are unlikely to have improved last month, despite improved returns for the industry, according to Sol Waksman, BarclayHedge CEO.

“Inflows into hedge funds probably remained weak in April,” he said. “Extreme market volatility and March’s poor hedge fund performance will probably deter investors from putting lots of money to work in hedge funds.”

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...