Although positive market sentiment consolidated and risk appetite made a comeback, the industry continued to record large net outflows in quarter two 2009, despite declining 61 per cent
Although positive market sentiment consolidated and risk appetite made a comeback, the industry continued to record large net outflows in quarter two 2009, despite declining 61 per cent from Q1’s reading, according to Lipper Tass.
The quarterly net money outflows amounted to USD45.74bn-the third largest negative reading since 1994.
Net outflows of the hedge fund industry in second quarter 2009 decreased about 61 per cent from the outflows of first quarter to USD45.74bn.
For the rolling one-year period as of the end of June 2009 net money outflows of the hedge fund segment amounted to USD327.02bn-an amount accounting for more than 93 per cent of the sum of all negative quarterly money flows to the industry since first quarter 1994.
Driven by positive market performance, global hedge fund assets are estimated to have increased 2.39 per cent quarter on quarter-from USD1.18trn at the end of March 2009 to USD1.21trn at the end of June 2009.
All hedge fund strategies except emerging markets, global macro, and managed futures posted negative money flows for second quarter 2009, with cumulative net outflows in second quarter 2009 accounting for 4.24 per cent of beginning-of-quarter assets, down from the 9.57 per cent recorded for first quarter.
Although of a different magnitude, the largest hedge fund strategy net outflows for the second quarter were posted by the same strategies that experienced heavy negative money flows in the first quarter, i.e., multi-strategies (-USD26.11bn), event-driven (-USD14.56bn) and long/short equity (-USD6.17bn).
In absolute terms the performance of the Credit Suisse/Tremont Hedge Fund Index for second quarter 2009 came in at a positive 6.27 per cent, the highest quarterly performance reading since January 2000.
