The Hedge Fund Capital Rises to a Record in the 2Q of 2014
Following to Hedge Fund Research (HFR) survey, total hedge fund capital increased to a record in the second quarter of 2014, led by an increase in inflows to activist funds and arbitrage.
Capital
increased to $2.8 tn, surpassing the record of $2.7 tn set in the
previous quarter, as the allocation of new capital to hedge funds
increased to $30.5 bn from $26.3 bn, the research firm says in a press
release.
New
investment into event-driven hedge funds ‒ those that promote activist
strategies or focus on distressed companies ‒ jumped to $11.7 bn in the
second quarter from $4 bn in the first quarter, HFR says.
New
capital invested in funds with an activist focus rose to $5.9 bn in the
second quarter from $3.5 bn in the first. The HFRI Activist Index,
which measures the performance of activist funds, rose 2.8 percent in
the first half. The second quarter saw a strengthening of the trend to
more rapid growth in the larger, more established hedge funds with more
sluggish increases in smaller, newer funds.
Source: IR Magazine
