Investors withdrew USD10.99 billion from the global hedge fund business in June, the second month this year net flows for the business were negative, according to the just-released eVestment June 2021 Hedge Fund Asset Flows Report.
Net flows were also negative in March of 2021, but general enthusiasm for the hedge fund business this year has year-to-date (YTD) asset flows still in the green at +USD28.69 billion.
At the mid-way point of 2021, the hedge fund business is almost half way to making up the USD59.32 billion investors pulled from hedge funds in 2020 according to eVestment data. Strong performance this year – average hedge fund performance stands at +9.24 per cent through June – has also added to industry AUM, which now stands at USD3.55 trillion.
“The June data does not paint a negative portrait overall,” says eVestment Global Head of Research and report author Peter Laurelli. “The volume of net flow was relatively light and the proportion of products with redemptions in June was below the prior five-year average. While net outflows are by definition a negative, the redemptions in June are not overly concerning amid an otherwise positive year for the hedge fund business.”
Managed Futures funds were the big asset winners in June, pulling in +USD1.92 billion in new money last month. YTD Managed Futures funds have pulled in +USD8.05 billion.
“From Q2 2018 through Q2 2020, Managed Futures funds had net outflows in every single quarter,” says Laurelli. “But the onset of the pandemic appeared to change investors’ sentiment to the group. Performance has been a key theme for relative success within the group this year. Managed Futures products dominating the inflow picture in 2021 returned an average of almost 9 per cent last year and just over 8 per cent so far this year.”
