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Hedge funds industry inflows total USD19.3bn in November

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The hedge fund industry extended its monthly inflow streak to nine consecutive months in November, bringing in USD19.3 billion in new assets.

The hedge fund industry extended its monthly inflow streak to nine consecutive months in November, bringing in USD19.3 billion in new assets.

November’s inflows represented 0.41 per cent of hedge fund industry assets, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions.

Over the course of its nine-month streak, the hedge fund industry has added USD199.8 billion in new assets.

Total hedge fund industry assets under management stood at nearly USD4.69 trillion as November ended, following a trading loss of nearly USD40.0 billion during the month.

Most sub-sectors had positive net inflows in November, despite the fact that the majority of hedge fund sub-sectors suffered trading losses. In dollar terms, the winning sub-sectors were led by Multi-Strategy funds, which attracted USD5.5 billion during the month; Balanced (Stocks & Bonds) up USD4.8 billion; and Emerging Markets – Asia funds, which added USD2.8 billion.

Sub-sectors posting net redemptions in November included Emerging Markets – Global funds, with USD2.2 billion in outflows; Macro funds, shedding USD449.5 million; and Merger Arbitrage funds, down USD60.8 million. In relative terms, Emerging Markets – Global funds fared the worst, seeing their average AUM dip -1.02 per cent. Macro funds gave up 22 basis points worth of AUM, while Merger Arbitrage funds shed 7 bps.

As for the managed futures industry, after posting inflows in October, many CTAs slipped back into net redemptions in November, giving back -USD2.8 billion in net outflows. The four CTA sectors tracked were evenly split between monthly inflows and outflows. Multi Advisor Futures Funds and Discretionary CTAs gained assets, while Systematic and Hybrid traders lost ground. Multi Advisor Futures Funds were the big mover, increasing their assets by 4.91 per cent.

For the 12 months through November, the global hedge fund industry experienced USD221.1 billion in inflows. A nearly USD252.0 billion trading profit over the period brought total industry assets to the USD4.69 trillion figure at the end of the month, up from USD4.66 trillion at the end of October and up from USD3.83 trillion a year earlier.

Of the 19 hedge fund sub-sectors tracked, 13 posted trailing-twelve month inflows through November. Fixed Income funds led the way bringing in USD79.1 billion, +9.8 per cent of assets; while Sector Specific funds added USD50.4 billion, +19.5 per cent of assets; and Multi-Strategy funds saw USD42.5 billion in inflows, +11.5 per cent of assets.

Other sub-sectors with notable 12-month inflows included Event Driven funds, adding USD24.6 billion 12.5 per cent of assets; Emerging Markets – Asia funds, bringing in USD20.6 billion, 14.0 per cent of assets; Equity Long-Only funds with inflows of USD16.3 billion, 8.2 per cent of assets; and Merger Arbitrage funds taking in USD11.9 billion, 14.5 per cent of assets.

Sub-sectors with the largest 12-month outflows included Balanced (Stocks & Bonds) funds with USD16.2 billion in redemptions -3.3 per cent of assets; Macro funds shedding USD12.9 billion, -6.9 per cent of assets; Equity Long Bias funds with USD8.4 billion in redemptions, -2.5 per cent of assets; and Equity Market Neutral funds with USD3.8 billion in outflows, -6.7 per cent of assets.

Over the 12 months through November, the CTA industry added USD8.9 billion in new assets. Total industry assets grew to USD346.1 billion at the end of November, up from USD301.5 billion a year earlier, thanks to a USD25.3 billion trading profit over the period.

All four sub-sectors posted 12-month inflows through November. Systematic CTAs added USD4.5 billion, 1.6 per cent of assets; Discretionary CTAs brought in USD2.7 billion, 21.9 per cent of assets; Hybrid CTAs took in USD1.8 billion, 19.4 per cent of assets; and Multi-Advisor Futures Funds saw USD871.3 million in inflows, 8.4 per cent of assets.

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