Investors removed an estimated USD14.72 billion from hedge funds in September pushing Q3 net flows into negative territory with an estimated USD5.71 billion leaving the industry in Q3, according to the September 2018 eVestment Hedge Fund Asset Flows Report.
Year-to-date net flows are essentially now flat with a very slight net USD70 million inflow. Total industry assets sit at USD3.310 trillion.
Among primary strategies Event Driven funds were a bright spot, with asset flows of +USD1.73 billion in September and +USD4.10 billion for Q3. Event Driven funds, however, are still negative for the year, with year-to-date (YTD) flows at -USD1.42 billion.
Three other primary strategies – Market Neutral Equity, Convertible Arbitrage and MBS Strategies funds – were in the green for asset flows in September, although just barely. Market Neutral Equity saw the most flows among the three at +USD300 million.
Long/Short Equity saw the biggest outflows among primary hedge fund strategies in September at -USD3.17 billion. Managed Futures and Direction Credit funds saw big outflows as well, with both seeing negative flows of more than -USD2.90 billion in September.
Among fund domiciles, Asia-based funds were the winners in asset flows in September, with flows of +USD690 million. Funds based in Europe saw outflows of -USD4.85 billion in September and funds based in the Americas saw big outflows of -USD10.57 billion in September.
