Hedge Fund Asset Flow Report – July 2018

Hedge Fund Flows Positive in July But Signs of Industry Consolidation Continue

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. 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.

Key findings from this 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.

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