The hedge fund industry took in a net USD10.0 billion (0.5% of assets) in August, building on an USD8.2 billion inflow in July, based on data from 3,340 funds, according to BarclayHedge and TrimTabs.
“Year to date, the hedge fund industry has taken in a net USD45.0 billion, a hefty turnaround from the USD3.6 billion outflow for January-August 2012,” says Sol Waksman, president and founder of BarclayHedge. “Industry assets stood at USD2.0 trillion in August, just below the five-year high of USD2.1 trillion set in September 2008.”
The TrimTabs/BarclayHedge Hedge Fund Flow Report noted that Equity Long Only hedge funds lost 1.7% in August, reversing a 2.9% gain in July, but did outperform the Russell 3000 Index’s 2.8% loss for the month.
“Equity Long Bias funds, meanwhile, lost 0.9% in August, reversing a 3.9% gain in July and marking their worst showing since losing 4.8% in May 2012," says Waksman.
Funds of hedge funds shed USD4.2 billion (0.9% of assets) in August, adding to a USD4.1 billion outflow in July. Funds of funds have attracted net inflows in just two of the past 24-months.
Meanwhile, the monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers found that hedge fund managers grew notably less bearish on US stocks in September. Also, managers were substantially less bearish on US Treasuries in September compared to August but a majority of them were neutral on the US Dollar Index.