Hedge Fund Asset Flows Report – June 2018

Performance Issues Taking a Toll on Hedge Funds as June, Q2 Flows Negative

Investors withdrew an estimated $7.88 billion from global hedge funds in June 2018, bringing overall Q2 2018 net flows for the industry to -$5.43 billion, according to the just-released eVestment June and Q2 2018 Hedge Fund Asset Flows Report.

Industry assets under management (AUM) stood at $3.308 trillion at the end of the quarter and signs of industry consolidation continue to present themselves. Among investors, the new report shows a strong demand for funds that have performed well, with a preference for size, and clearly investors are willing to remove assets from those funds not meeting expectations.

Key findings from this report include:

  • Among primary strategies, Macro funds are among the big winners this year, with AUM up +$2.89 billion in June, up +$6.24 billion for the second quarter and up +$14.82 billion so far this year. However, looking more closely shows that over 60% of reporting Macro funds faced net redemptions in June and products with net inflows were dominated by a small handful of funds.
  • Fixed-income-focused Emerging Markets products were the primary cause of top-line redemption figures from Emerging Markets funds in June, with AUM falling -$1.49 billion in June. This follows across the board performance problems in Emerging Markets funds this year, as noted in eVestment’s June/Q2 2018 Hedge Fund Performance Report. Funds focused on countries like China, India and Russia are deep in the red this year, following exceptional performance in 2017.

Whether you are an eVestment client or not, you can take advantage of highlights from our rich hedge fund research reports. Hedge fund industry research reports publish monthly. Other industry and survey-based reports publish annually.

Sign up to receive the latest hedge fund asset flow and performance report in your inbox as it is published each month: