Investors around the world have had a strong appetite for Event Driven, Asia and Emerging Markets hedge funds, moving almost $14 billion year-to-date (YTD) into these funds while overall investor redemptions from the hedge fund industry continue, according to the just-released eVestment April 2019 Hedge Fund Asset Flows Report.
Event Driven funds pulled in +$2.84 billion in April, bringing YTD flows to +$5.19 billion. Asia- and Emerging Markets-focused funds saw more modest flows of +$1.24 billion and +$920 million in inflows, but YTD both are above +$4 billion in flows.
Overall investor redemptions were low – or essentially flat – at -$1.36 billion, bringing YTD investor outflows to -$18.15 billion. Strong hedge fund performance was additive to industry assets in April, however, putting overall industry assets at $3.288 trillion.
Other interesting points from the new report include:
- Just over 56% of reporting managers had outflows during the month, which is below the level in March, but above the monthly average of the last three years.
- Among other primary strategies, Directional Credit hedge funds pulled in another +$1.62 billion in April and Macro hedge funds pulled in +$1.07 billion. However, Macro funds are in the red for the year at -$3.59 billion and Directional Credit funds are barely positive YTD at +$950 million.
- April marked the 14th consecutive month where Managed Futures hedge funds had net outflows, to the tune of -$2.05 billion, bringing YTD outflows to -$8.09 billion.
- YTD Long/Short Equity hedge funds are among the biggest asset losers, seeing outflows of -$11.92 billion so far this year. In April, these funds saw outflows of $-1.88 billion.