Hedge Fund Asset Flows Report – January 2019

About the Report

Over 2,000 hedge fund firms submit data about their products to eVestment every month, including performance, assets, strategy details, primary investment markets and regional focuses. 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.

Hedge Fund Assets Up in January as Performance Offsets Investor Redemptions

Investors pulled a modest $1.66 billion from the global hedge fund industry in January. However, strong hedge fund performance almost across the board in January offset those redemptions, lifting total industry assets to $3.214 trillion.

Multi-Strategy hedge funds saw a major turnaround in investor sentiment to start off the year, with investors adding $4.34 billion to these funds in January. This is a major contrast to the -$7.87 billion investors removed from Multi-Strategy funds in Q4 2018 and the -$19.32 billion investors removed for full year 2018.

Report Highlights:

  • Despite strong performance of Long/Short Equity hedge funds to start the year, investors have continued to pull money from these strategies, to the tune of -$5.93 billion. This was the largest redemption among primary hedge fund strategies and is on top of the -$10.74 billion investors pulled from Long/Short Equity funds last year.
  • Most other primary strategies, including Managed Futures, Macro, Relative Value Credit and Event Driven funds, also saw investor outflows, although these outflows were small.
  • In addition to Multi-Strategy funds, Directional Credit funds were among the primary strategies seeing new investor money in January, up +$2.05 billion. MBS Strategy funds and Convertible Arbitrage funds also eked out positive investor flows in January at +$520 million and +$310 million respectively.

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