Hedge funds were up 0.33 per cent in May with 2017 year-to-date gains coming in at 3.28 per cent, according to the June 2017 EurekaHedge Report.
Investor appetite for hedge funds has picked up pace since the start of the year, with net inflows of USD39.0 billion for the year following redemptions of USD55.1 billion in 2016.
AUM for the North American hedge fund industry has reached a record high of USD1.55 trillion as of May 2017. Since the Trump win in November last year, North American mandates have recorded a growth in AUM of USD56.3 billion – USD39.5 billion accruing from performance-based gains while USD16.8 billion from net investor allocations.
AUM for long/short equities hedge fund managers grew by USD19.1 billion over the year with strength led by performance-based gains of USD23.6 billion. Long/short equities hedge fund managers are up 4.99 per cent for the year.
As of May 2017 year-to-date, Asian funds have recorded a growth in AUM of USD6.6 billion, with USD5.1 billion accounted for by performance-based gains while the remainder, roughly USD1.5 billion has come through net investor allocations. Asia ex-Japan managers are up 7.91 per cent for the year with underlying Greater China and Indian managers up 10.80 per cent and 15.35 per cent respectively. Japan focused funds are up 3.13 per cent over the same period.
The USD516.4 billion European hedge fund industry grew its AUM by USD10.5 billion as of May 2017 year-to-date, following a steep contraction in AUM of USD29.3 billion in 2016. Managers investing with a dedicated European mandate are up 4.25 per cent for the year following a flat gain of 0.19 per cent in 2016.
Sub-billion dollar hedge funds recorded strong investor interest as of 2017 year-to-date, with net inflows totalling USD16.2 billion. Within sub-billion dollar hedge funds, mid-size funds managing between USD100 million and USD500 million have seen inflows of USD14.3 billion. In contrast billion dollar hedge funds have pulled in USD22.8 billion in new investor money this year.
