Research Shows Assets Continue To Flow Into Hedge Funds

Aug 11 2006 | 12:00am ET

Assets under management in hedge funds have continued their robust growth, according to Tremont Capital Management research, in spite of recent less-than stellar returns.

Hedge funds added $38.3 billion in net inflows during the second quarter to rise to $954 billion, a 4.19% jump. Tremont’s Asset Flow Report showed fixed-income arbitrage the big winner with 7.28% growth, following a tiny 0.81% increase in the first quarter.

Global macro strategies also saw assets increase by more than 7%, adding 7.16% following the first quarter’s 4.04% rise. Emerging markets continued to attract big money, following up last quarter’s 7.97% increase with a 5.83% jump in the second quarter.

“Investors are opportunistically diversifying their portfolios,” said Tremont CEO Robert Schulman. “Money is flowing into hedge funds generally, while within the industry investors are adjusting their portfolios to take advantage of the changing opportunity set.”

All 10 strategies tracked by Tremont posted net inflows during the second quarter, with managed futures adding 5.87%, equity market neutral 5.07%, long/short equity hedge 3.86%, dedicated short bias 3.84%, multi-strategy 3.11%, convertible arbitrage 3.01%, and event driven 2.28%. 

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...