The hedge fund industry took in USD7.7 billion, or 0.3 per cent of assets, in June, down from USD19.1 billion (0.8 per cent of assets) in May, according to BarclayHedge and TrimTabs.
“First half inflows to hedge funds this year totalled USD82.5 billion (3.8 per cent of assets), the most since 2007,” says Sol Waksman, president and founder of BarclayHedge.
By comparison, the industry took in USD26.8 billion (1.5 per cent of assets) in the first half of 2013.
Industry assets climbed to a six-year high of USD2.35 trillion in June, according to estimates based on data from 3,441 funds. Assets rose 21.0 per cent in the past 12 months but were down 3.6 per cent from the all-time high of USD2.4 trillion in June 2008.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry gained 1.4 per cent in June. While this performance was the best in four months, it was less than the S&P 500’s 2.1 per cent gain. In the past 12 months, hedge funds returned 10.8 per cent, while the S&P 500 gained 24.6 per cent.
“Equity long only funds had the best returns in June, gaining 3.4 per cent and outperforming all other fund categories,” says Waksman.
Convertible arbitrage funds fared worst, edging up 0.4 per cent.
The monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds hedge fund managers narrowly divided on the short-term prospects for US equities. July’s survey found 37.2 per cent of respondents were bullish on the S&P 500 over the next 30 days, while 34.6 per cent were bearish. Optimism on the US Dollar Index rose to a two-year high, while bullish sentiment on gold hit a five-month high. The proportion of managers expecting crude oil prices to rise dropped to the lowest level in six months.
