Investors redeemed an estimated net USD5.2 billion from hedge funds in January 2017, far below the USD19.3 billion removed in January 2016, according to eVestment’s Hedge Fund Industry Asset Flow Report.
Total industry AUM now stands at USD3.033 trillion.
January was, however, the fifth consecutive monthly outflow from hedge funds, making this the longest streak since six months of outflows ending December 2011. Outflows were primarily from funds underperforming in 2016.
Macro and commodity funds both began 2017 with positive investor sentiment. Losses throughout 2016 within larger managed futures funds though continued to weigh on flows into the new year.
Event driven and fixed income/credit flows were negative to begin the year, but eVestment believes that H2 2016 returns may shift sentiment to positive.