For hedge funds, August was a very good month. The industry posted its sixth-straight up month, and investors continued to return to the sector, according to Eurekahedge.
The Eurekahedge Hedge Fund Index rose 1.1% last month, according to preliminary figures. The research firm credited rallies in the equities and sovereign debt markets for the bump. The Eureka index is up 13.1% year-to-date.
That performance has not gone unnoticed by investors, which have slowly been returning to hedge funds since pulling hundreds of billions of dollars last year and early this year. Hedge funds took in $4.5 billion in new money in August, more than double July’s $2.1 billion inflow.
Hedge funds do remain on the losing side in one column of the ledger: The number of hedge funds are still down year-to-date, with 300 new funds taking the place of 400 closed funds.