Hedge Fund Asset Flows Report – May 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.

Investors redeemed estimated $3.78 billion from hedge funds in May

Aggregate flows were again negative in May, though as in past months there were targeted allocations even within strategies facing the largest redemption pressures. This theme has been persisting for several months, indicating the industry is enduring a consolidation driven primarily by the ability, or inability, of managers to produce returns in-line with investor expectations. While in the near-term this process is painful, it is a natural process of re-aligning investor demands and fund capabilities in challenging public markets.

Report Highlights:

  • Investors redeemed an estimated $3.78 billion from hedge funds in May. YTD redemptions are now $25.43 billion.
  • Targeted interest in event driven strategies continued in May.
  • Macro fund flows shifted back to negative in May and the outlook is concerning given recent returns.
  • EM hedge fund flows were negative in May for the first time in five months. China equity strategies saw sporadic inflows.

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