Hedge Fund Asset Flows Report – October 2018

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 Asset Flows Negative in October as Performance Challenges Continue

Investors removed an estimated $7.13 billion from the global hedge fund industry in October, pushing year-to-date (YTD) flows firmly negative at -$10.09 billion. The October outflows follow an uninspiring year in hedge fund performance, culminating in October performance numbers that saw almost all primary hedge fund markets and strategies in the red for the month, as eVestment reported earlier in November.

Given that, historically, December has been a month where outflows are elevated even in otherwise positive years, it is highly likely that 2018 will end up as a year of net redemptions from the industry. Overall industry AUM now sits at approximately $3.252 trillion.

Report Highlights:

  • Commodity funds and Equity funds were just barely positive in October with investors adding +$540 million and $160 million respectively.
  • Relative Value Credit and Market Neutral Equity funds were big asset winners in October, at +$2.68 billion and +$2.35 billion, respectively.
  • Macro funds were the big asset losers in October, with flows at -$3.94 billion for the month. These funds are still positive YTD, however, with flows at +$7.81 billion so far in 2018.

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