Investors Hedge Funds Q1 2012
Investors Return to Hedge Funds Amid Strong Performance
Investors are once again looking to hedge funds for alpha as the industry has had an exceptionally strong start to the year. Data from GlobeOp shows that the stabilizing stock markets and the thought that the EuroZone crisis may be settling has boosted investment returns for hedge funds and investor confidence in fund managers' abilities to generate those returns.
Investors ploughed more money into hedge funds over the past month, data from hedge fund administrator GlobeOp shows, as hopes of a resolution to the euro zone debt crisis and a rebound in markets boosted confidence after last year's losses.
Net inflows into hedge funds, as measured by the GlobeOp Capital Movement Index, which tracks monthly net subscriptions to and redemptions from hedge funds managing around $174 billion (111 billion pounds), were 2.1 percent of total assets over the month to March 1.
While this was slightly down on last month's 2.22 percent, it is nevertheless the second-highest inflow over the past six months and above the 1.12 percent recorded last March.
Investors have been cheered by an upturn in hedge fund performance so far this year, as markets have rallied in the wake of the European Central Bank's one trillion euro cash injection to try and head off a second credit crunch. Source
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