July Hedge Fund Flows Positive Amid Signs of Consolidation

24 Aug

July Hedge Fund Flows Positive Amid Signs of Consolidation

Global hedge fund flows were positive in July, with investors adding an estimated $5.85 billion to funds around the world and bringing overall industry AUM to $3.307 trillion, according to the just-released July eVestment 2018 Hedge Fund Asset Flows Report.

However, looking across all funds reporting to eVestment, signs of consolidation continue: 42% of funds reporting to eVestment logged AUM inflows, while 58% had outflows. This shows an acceleration of a consolidation trend that has been ongoing for some time: the prior 30-month average was 49% of funds with inflows and 51% with outflows.

Other interesting points from the new report include:

  • Among types of hedge funds, Equity funds were the big winners in July, with inflows of +$7.51 billion. This brings YTD inflows to +$9.85 billion. Fixed-Income/Credit funds and Commodities funds also saw positive flows last month, while Multi-Asset funds saw outflows of -$5.78 billion in July. Multi-Asset funds are now down -$12.60 billion for the year.
  • Among primary strategies, Market Neutral Equity funds saw strong inflows of +$4.95 billion in July, bringing YTD inflows to +$11.92 billion. Long/Short Equity funds also saw positive inflows of +$3.16 billion in July, although they still are just barely negative for flows YTD.
  • Multi-Strategy and Macro funds were both negative in July, both serving up outflows of more than -$2 billion for the month. Multi-Strategy funds are the big losers among primary strategies so far YTD, with outflows of -$10.08 billion.
  • Three quarters of Emerging Markets funds reporting to eVestment faced outflows in July, bringing outflows for this segment to -$560 million. However, the main reason net flows were not more negative in July was because a small group of products have been significantly outperforming the rest of their EM peers.

To download a complete copy of the latest report, please click here.