Tuesday, 21 October 2014
Last updated 9 hours ago
May 21 2008 | 4:04pm ET
For the first time on record, the hedge fund industry is actually shrinking, according to HedgeFund.net.
The research firm’s first-quarter asset flows report show that total hedge fund assets fell 1.4% in the first three months of the year, as performance losses outstripped $53 billion in inflows. The quarterly decline—the first ever recorded by HFN—leaves hedge funds managing $2.848 trillion.
Fixed-income hedge funds—despite performance losses—were a favorite of investors, with assets rising by 3.6% to $554.8 billion. Meanwhile, redemptions and performance losses left equity hedge fund assets down 5.4% at $1.038 trillion.
Emerging markets, last year’s top-performing strategy, saw dreadful performance wipe out any asset gains from inflows, as $27.8 billion in losses swamped $9.45 billion in new money, leaving such funds down 5.5%. Latin America funds bucked that trend, with assets rising 29.8% to $21.28 billion due to new fund launches and inflows.
Distressed and CTA/managed futures funds were also favored by investors, the latter seeing its asset level rise 15.3% to $196 billion, and the former 3.3% to $252.3 billion.
Funds of hedge funds, by contrast with the industry as a whole, more than made up for their performance losses through new investments. Investors poured $71.9 billion, while the market subtracted $57.2 billion, leaving funds of funds up 1.1% at $1.404 trillion.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...