The pace of hedge fund net redemptions slowed in July to $16.88 billion (-0.35% of industry assets), according to the Barclay Fund Flow Indicator published by BarclayHedge.
A $124.13 billion trading profit during the month brought total hedge fund industry assets to more than $4.99 trillion as July ended.
Net Redemptions were the norm across most hedge fund subsectors in July. Those bucking the trend were led by Multi-Strategy funds, which were up $4.49 billion (+0.66% of industry assets). Other strategies picking up investor dollars included Convertible Arbitrage funds $1.40 billion (+3.84% of industry assets); Emerging Markets – Asia funds $0.93 billion (+0.59% of industry assets); Sector Specific funds +$0.86 billion (+0.18% of industry assets); and Option Strategies funds +$0.19 billion (+0.36% of industry assets).
Among those reporting net outflows in July, Fixed Income funds saw the greatest monetary flight with -$6.70 billion in outflows (-0.73% of assets). Following Fixed Income managers’ woes were Balanced (Stocks & Bonds) funds -$5.44 billion (-0.71% of industry assets); Equity Long-Only funds -$4.21 billion (-1.19% of industry assets); Emerging Markets – Global funds -$2.35 billion (-0.98% of industry assets); Equity Long Bias funds -$1.89 billion (-0.59% of industry assets); Equity Market Neutral funds -$1.65 billion (-2.94% of industry assets); Equity Long/Short funds -$1.56 billion (-0.96% of industry assets); and Macro funds -$0.65 billion (-0.33% of industry assets).
The managed futures industry posted a second consecutive month of net redemptions in July with -$4.95 billion in outflows. Nevertheless, two of four CTA subsectors tracked showed net inflows in July: Discretionary CTAs added $486.45 million, (+2.07% of assets) while Multi Advisor Futures funds saw $53.07 million in inflows (+0.28% of assets).
On the redemption side of the ledger, Systematic CTAs saw -$5.23 billion in outflows, (-1.49% of assets), while Hybrid CTAs experienced -$214.86 million in redemptions (-0.93% of assets).
For the 12 months through July, the hedge fund industry experienced -$70.17 billion in net redemptions. A -$331.20 billion trading loss over the period brought total industry assets under management to $4.99 trillion as July ended, up from $4.87 trillion at the end of June and up from $4.52 trillion a year earlier.
Multi-Strategy funds remained the 12-month inflow leader through July, increasing inflows over the period to $41.57 billion, (+9.11% of assets). Other subsectors with coffers swelling from the last twelve months included Merger Arbitrage funds $12.24 billion (+14.05% of industry assets); Sector Specific funds $10.58 billion (+2.96% of industry assets); Convertible Arbitrage funds $5.76 billion (+17.92% of industry assets); and Option Strategies funds $3.05 billion (+6.65% of industry assets).
More than half of the Hedge fund subsectors tracked by BarclayHedge have seen investor redemptions swamp subscriptions by a billion dollars or more during the trailing twelve-month period. Of these, the largest five have suffered a flight of more than ten billion dollars, including Fixed Income funds which are down -$58.37 billion (-6.13% of industry assets). Others in this unhappy mélange include Emerging Markets – Global funds -$21.09 billion (-10.56% of industry assets); Macro funds -$13.60 billion (-6.59% of industry assets); Balanced (Stocks & Bonds) funds -$12.51 billion (-1.99% of industry assets); and Equity Long Bias funds -$11.91 billion (-3.26% of industry assets).
Over the 12 months through July, the managed futures industry experienced -$947.08 million in net redemptions. A $41.54 billion trading profit and new entrants over the period contributed to $392.42 billion in total industry assets at the end of the month, up from $339.94 billion a year earlier.
Over the 12-month period through July, three of the four managed futures subsectors posted net inflows. Discretionary CTAs added $5.48 billion (+35.03% of assets), Multi Advisor Futures Funds saw $2.61 billion in inflows (+20.70% of assets), and Hybrid funds brought in $1.02 billion (+5.53% of assets).
Posting 12-month outflows were Systematic CTAs with -$7.52 billion in redemptions (-2.42% of assets).
