Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, were up 2.2% in the first quarter of 2011, posting positive performance in each month of the quarter, according to the latest hedge fund industry review published by the Dow Jones Credit Suisse Hedge Fund Index team.
The report, which examines the drivers of hedge fund performance and asset growth in the first the months of the year,also found that the industry saw an estimated USD10.1 billion in inflows in the first quarter. If this pace is maintained for the rest of 2011, the industry is on track to double the asset inflows received in 2010.
Global Macro experienced the largest inflows in the first quarter, gaining USD3.3 billion followed by Fixed Income Arbitrage (+USD2.9 billion) and Managed Futures (+USD2.8 billion).
Including performance gains, current hedge fund industry assets under management (AUM) grew to USD1.8 trillion as of March 31, 2011, up from USD1.7 trillion on December 31, 2010.
Large hedge funds (those with over USD500 million) dominated asset raising in the first quarter with over USD12.0 billion of inflows while smaller funds experienced net outflows.