Trend of hedge fund flows are ‘undeniably negative’, says eVestment
01 July 2019 New York
Image: Shutterstock
The trend of hedge fund flows is “undeniably negative”, according to the analytics firm, eVestment’s Hedge Fund Asset Flows Report.
In its most recent Hedge Fund Asset Flows Report, eVestment found investors redeemed an estimated $3.78 billion from hedge funds in May 2019, bringing year-to-date flows to a negative $25.43 billion.
Performance losses reduced assets further, pushing total industry assets under management down to $3.238 trillion.
In the last nine months (before May), an estimated $77.4 billion has been removed from the hedge fund industry.
Peter Laurelli global head of research eVestment, indicated: “In only one month have net flows been positive, but even in that month the figure was the lowest absolute level within the nine-month span, which is to say that when the net has been positive, it has been the least directionally significant move in the last nine months.”
However, the report did find many funds have been successfully able to raise new assets in 2019, and it is not just in categories which are seeing aggregate inflows.
In every segment, even those most negative, there are funds gaining new assets, eVestment found.
In addition, the analytics firm also stated European managers continue to see assets leave in 2019.
Products gained new assets in May, while China-focused funds were dominant and a focus on equity was evident.
eVestment said: “There are managers able to raise capital both in the UK and continental Europe. Risk premia strategies have been successful, as have some event-driven funds
and even managed futures firms.”
It added: “The biggest drag on Europe-based fund flows in 2019 have been from long/short equity strategies which did not perform well in 2018. There were several China-focused equity managers who saw redemption pressures in May.”
In its most recent Hedge Fund Asset Flows Report, eVestment found investors redeemed an estimated $3.78 billion from hedge funds in May 2019, bringing year-to-date flows to a negative $25.43 billion.
Performance losses reduced assets further, pushing total industry assets under management down to $3.238 trillion.
In the last nine months (before May), an estimated $77.4 billion has been removed from the hedge fund industry.
Peter Laurelli global head of research eVestment, indicated: “In only one month have net flows been positive, but even in that month the figure was the lowest absolute level within the nine-month span, which is to say that when the net has been positive, it has been the least directionally significant move in the last nine months.”
However, the report did find many funds have been successfully able to raise new assets in 2019, and it is not just in categories which are seeing aggregate inflows.
In every segment, even those most negative, there are funds gaining new assets, eVestment found.
In addition, the analytics firm also stated European managers continue to see assets leave in 2019.
Products gained new assets in May, while China-focused funds were dominant and a focus on equity was evident.
eVestment said: “There are managers able to raise capital both in the UK and continental Europe. Risk premia strategies have been successful, as have some event-driven funds
and even managed futures firms.”
It added: “The biggest drag on Europe-based fund flows in 2019 have been from long/short equity strategies which did not perform well in 2018. There were several China-focused equity managers who saw redemption pressures in May.”
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