Hedge Fund Asset Flows Report – December 2018

About the Report

Over 2,000 hedge fund firms submit data about their products to eVestment every month, including performance, assets and strategy details, including primary markets of investment and regional focus. The calculated asset flows for these products provide the basis for estimating the distribution and flow of assets through the broad hedge fund industry.

As you are looking to supplement your own research with external sources, the kind of data provided in this report can help you to form an opinion about an asset class or follow the continuing, or emerging trend as you are developing the allocation decisions for your portfolio.

High Performing Hedge Funds Gain AUM in Otherwise Down 2018

Forty-two percent of hedge fund managers were able to raise new capital in 2018, but those that saw redemptions and/or lost money were in the majority and set up 2018 to be one of the most challenging years for the industry in a decade, according to the just-released December and Year-End 2018 eVestment Hedge Fund Asset Flow Report.

The year-end report highlights the importance of due diligence in the fund selection process. For instance, although overall figures for industry performance and flows are negative, those funds that did receive meaningful net inflows in 2018 outperformed the aggregate industry average by over 400 basis points.

Report Highlights:

  • Market Neutral Equity funds were the big winner in asset flows for 2018, with investors adding +$12.51 billion to these funds during the year, the most of any fund type for the year. Other asset winners for the year, among primary strategies, were MBS Strategies (+$8.01 billion) and Macro funds (+$6.74 billion).
  • For the month of December, almost all fund types and primary strategies had asset flows in the red, with Macro funds and Event Driven funds bucking the overall trend with investors adding +$3.44 billion and $710 million, respectively, to these funds last month.
  • Multi-Asset funds were the biggest asset losers in 2018, with investor redemptions at -$38.5 billion.

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