Investors continue to allocate to the hedge fund industry in January, according to the latest asset flows report from eVestment.
Data from the Atlanta-based investment database and technology solutions firm’s January 2014 Hedge Fund Asset Flows report estimated that investors added approximately $4.9 billion to the industry last month. Despite the inflow, performance losses of $12.8 billion resulted in the industry dropping 0.3% to $2.8 trillion.
Equity strategies appear to be a recent favorite among investors, as exposure in the sector surpassed equity strategies for the fourth consecutive month. January saw an estimated $13.8 billion added into equity strategies—the largest allocation for the group since August—while investors redeemed $7.3 billion from credit strategies in the same period.
Following in credit strategies’ footsteps is macro funds, which lost $4.7 billion last month, bringing its total redemption in the last three months to $13.5 billion. Managed futures are not far behind, losing $8.8 billion in the last three months.
Founded in 2000, eVestment acquired hedge fund analysis provider Pertrac and cloud-based hedge fund technology provider Fundspire last year. It now offers one of the world’s largest traditional and alternative investment databases.