Hedge Fund Asset Flows Report – August 2018

Hedge Fund Assets Up Slightly in August, Emerging Markets Funds’ Struggles Intensify

Global hedge fund asset flows were just slightly positive in August 2018, with $4.74 billion added to the $3.3 trillion-plus industry. Year to date (YTD) net flows to the industry stand at $15.38 billion.

Asset flows in August were more widely dispersed across funds and strategies than in the past months. If the trend continues, that would ameliorate some concerns about industry consolidation eVestment data indicated in previous reports, which showed a minority of funds getting the majority of new money.

Key findings from this report include:

  • In spite of performance declines during the year, investors have resumed allocating to Macro hedge fund strategies, adding +$3.53 billion to Macro funds in August. YTD Macro funds have seen assets increase +$15.20.
  • Event Driven funds were also big asset winners in August, bringing in an additional +$2.84 billion. And while Event Driven funds are positive for the past three months as well, they’re in negative territory to the tune of -$3.12 billion for the year.
  • Among primary strategies, only Directional Credit funds and Managed Futures funds saw AUM drop in August, with investors pulling -$460 million and -$2.97 billion respectively.
  • Reflecting the challenges facing Emerging Markets, nearly 70% of EM managers saw outflows in August with the overall segment seeing flows of -$540 million. And nearly 60% of EM managers have YTD net outflows.

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