Thursday, 26 March 2015
Last updated 23 sec ago
Oct 19 2009 | 1:14pm ET
Hedge funds enjoyed modest net inflows in the third quarter. But after four consecutive quarters of net outflows, even a paltry $1.1 billion in new capital for the industry is cause for breaking out the champagne.
Over two-thirds of hedge funds took in new money during the third quarter, according to Hedge Fund Research. The unlucky third, however, were disproportionately punished by investors. The outflows at the latter totaled more than $37 billion, while the inflows at the former were more than $38 billion. Over the 12 months preceding the second quarter, investors yanked some $330 billion from the industry.
Still, the hedge fund industry was $100 billion larger at the end of last quarter than at the end of the second, thanks to continuing strong performance for hedge funds. The third quarter was the industry’s best in terms of performance in more than a decade, pushing total industry assets to $1.53 trillion.
Funds of hedge funds have continued to lose assets, HFR data shows. Nearly three-quarters of funds of funds suffered outflows in the third quarter, but those losses totaled just $3.2 billion. Over the previous four quarters, investors withdrew $180 billion from funds of funds.
“The most recent data suggests that the sentiment of hedge funds investors has improved from historical lows, but investors remain selective about fund strategy and exposure characteristics,” said Kenneth Heinz, HFR’s president. “Sharp performance dispersion across funds, strategies and timeframes in the last five quarters has contributed to a more tactical allocation environment where both expectations and positioning can vary widely from one investor to the next.”
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…