Investors redeemed an estimated $6.51 billion from the global hedge funds business in August 2019, bringing year-to-date (YTD) flows to a negative $63.61 billion, according to the August 2019 eVestment Hedge Fund Asset Flows Report. Performance also reduced assets as total industry AUM declined to $3.259 trillion last month.
The majority of primary strategies eVestment tracks actually saw asset inflows, but large outflows among Macro hedge funds (-$6.18 billion) and Long/Short Equity funds (-$5.33 billion) in August dwarfed those other inflows. YTD Long/Short Equity funds are the biggest asset losers among primary strategies eVestment tracks, seeing outflows of -$31.14 billion so far this year.
Other interesting points from the new report include:
- Event Driven funds were the big asset winners in August among primary strategies, pulling in +$2.59 billion during the month. YTD these funds have pulled in +$13.28 billion.
- Managed Futures funds were also in the green for asset flows in August, pulling in $1.5 billion, but remain in the red for flows YTD at -$10.62 billion. In fact, it has been 17 months since overall allocations outpaced redemptions to Managed Futures funds.
- MBS Strategies, Multi-Strategy, Convertible Arbitrage, Market Neutral Equity, Distressed and Relative Value Credit funds also eked out positive flows in August, but for most of them just barely.
- Emerging Markets fund outflows in August rose to their highest level since June 2018, with investors pulling a -$1.54 billion from these funds. However, YTD these funds have still seen +$1.94 billion in new AUM.
- European-based managers have, in aggregate, endured more than their proportional share of redemption pressures over the last year, with YTD flows at -$32.59 billion, but that paused in August as Americas-based managers accounted for the majority of outflows during the month, with August flows for funds based in the Americas at -$4.76 billion.