September Hedge Fund Flows Pull YTD Flows Nearly Flat

24 Oct

September Hedge Fund Flows Pull YTD Flows Nearly Flat

Investors removed an estimated $14.72 billion from hedge funds in September pushing Q3 net flows into negative territory with an estimated $5.71 billion leaving the industry in Q3, according to the just-released September 2018 eVestment Hedge Fund Asset Flows Report. Year-to-date net flows are essentially now flat with a very slight net $70 million inflow. Total industry assets sit at $3.310 trillion.

Among primary strategies Event Driven funds were a bright spot, with asset flows of +$1.73 billion in September and +$4.10 billion for Q3. Event Driven funds, however, are still negative for the year, with year-to-date (YTD) flows at -$1.42 billion.

Other interesting points from the new report include:

  • Three other primary strategies – Market Neutral Equity, Convertible Arbitrage and MBS Strategies funds – were in the green for asset flows in September, although just barely. Market Neutral Equity saw the most flows among the three at +$300 million.
  • Long/Short Equity saw the biggest outflows among primary hedge fund strategies in September at -$3.17 billion. Managed Futures and Direction Credit funds saw big outflows as well, with both seeing negative flows of more than -$2.90 billion in September.
  • Among fund domiciles, Asia-based funds were the winners in asset flows in September, with flows of +$690 million. Funds based in Europe saw outflows of -$4.85 billion in September and funds based in the Americas saw big outflows of -$10.57 billion in September.

To download a full copy of the report, please click here.