Hedge Funds Net Inflows April 2012
Investors Pumping in More Cash to Hedge Funds in April
Investors are pumping in more cash to hedge funds, according to data from hedge fund administrator GlobeOp. Net inflows into hedge funds rose to 1.24 percent of that total during the month to May 1, 2012 almost five times the previous month's inflows.
This cash injection was almost five times the previous month's 0.27 percent inflow but significantly lower than the 2.41 percent net inflow seen a year ago and the 2.02 percent and 2.2 percent net inflows recorded in March and February respectively.
Hedge funds lost an average 5.2 percent last year, according to Hedge Fund Research HFR.L, after the crisis in the euro zone and worries of a global recession rattled investors and punished all but the most bearish of strategies.
Requests to pull money out of hedge funds dropped on a monthly basis to 2 percent in April, from 3.23 percent in March as more investors backed long-short managers to successfully navigate the latest burst of market volatility.
After achieving its best first-quarter performance since 2006, the hedge fund industry lost some ground in April, as shown by a 0.36 percent drop in HFR's HFRI Fund Weighted Composite Index.
However, the sector still outperformed the Standard & Poor's 500 Index, which fell 0.8 percent in April. Source
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