Investors allocated a net USD6.57 billion into hedge funds in May, according to eVestment’s latest Hedge Fund Industry Asset Flows Report. The pre-Brexit vote inflow, biased toward US-domiciled funds over Europe and Asia, followed a very slight inflow in April.
This two-month string of positive net investor interest, the industry’s third in the last four months, helped to lift total industry AUM back over the USD3 trillion mark for the first time in 2016.
The report reveals that commodity strategies continue to be in favour, with USD1.2 billion added in May. Macro fund flows shifted firmly positive, multi-strategy fund flows rebounded and investor sentiment toward credit was mixed in May.
In addition, investors removed assets from hedge funds investing primarily in European markets and from funds located in Europe. An estimated USD1.7 billion was removed from hedge funds focused on European markets and an estimated USD3.3 billion was removed from managers domiciled in Europe in May.
