Money inflows

Hedge funds record highest monthly inflow in three years

Hedge funds received USD24.3bn (1.1 per cent of assets) in February, the highest monthly inflow in three years, building on an inflow of USD4.4bn (0.2 per cent of assets) in January, according to BarclayHedge and TrimTabs.

“The hedge fund industry raked in USD28.7bn in January and February, an 83 per cent jump from USD15.7bn in the same period last year,” says Sol Waksman, president and founder of BarclayHedge.
 
Industry assets climbed to a five and a half year high of USD2.2trn in February, according to estimates based on data from 3,374 funds. Assets rose 18 per cent in the past 12 months but are down 11 per cent from the all-time high of USD2.4trn in June 2008.
 
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry delivered a return of 1.9 per cent in February, recovering from January’s 0.4 per cent loss but substantially underperforming the S&P 500, which gained 4.6 per cent. In the past 12 months, the industry returned 10.0 per cent, while the S&P 500 gained 24.5 per cent.
 
Equity long bias hedge funds, the best-performing category in the past 12 months, rebounded in February.
 
“Equity long bias funds gained 3.0 per cent in February, the best return in five months and a healthy recovery from January’s 0.8 per cent loss,” Waksman says.
 
The monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds hedge fund managers turned a bit more upbeat on US stocks in March. More than half are bullish on the US dollar, no doubt responding to the Federal Reserve’s plan to dial back on monetary stimulus. Just under half of managers expect stocks to outperform bonds and precious metals over the next six months.

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