Macro Relative Arbitrage Investors
Hedge Fund Investors Look to Macro and Relative Arbitrage
After a shaky start to the year, investors contributed more money in the fourth-quarter to their favorite hedge fund managers, according to a yearly review released today by Hedge Fund Research Inc. The report found that:
Total capital invested in the hedge fund industry regained the $2 trillion milestone.
The industry originally eclipsed $2 trillion in assets under management in the first-quarter, then peaked at $2.04 trillion at mid-year before declining to $1.97 trillion to end a volatile third-quarter.
Total hedge fund AUM finished the year at $2.01 trillion, as Q4 performance gains offset a nominal net capital outflow of $127 million.
For the full-year 2011, investors allocated $70 billion of net new capital to hedge funds.
HFR’s report termed it “a volatile performance year.”
The HFRI Fund Weighted Composite Index declined by 5% percent, only the third calendar year decline since 1990. Source