Hedge Fund Assets Jump 0.22% in the First Month of 2015During the first month of 2015, total hedge fund assets increased 0.22 percent, bringing the industry’s total asset under management at over $3 trillion, reported eVestment, redemption pressures continue for equity & credit, macro/managed futures enjoy strong inflows.
The flow of investor assets was nearly flat on a net basis in January, but there were elevated redemptions and allocations occurring across major strategies.
Investors added $1.19 billion into Hedge Funds during the month. Light flows in January have been the norm over the last five years with the lowest levels of inflows, and/or highest outflows occurring around year-end and half year-end, while the largest inflows have consistently been recorded in February and August.
January flows showed a continuation of the redemption pressures on funds with equity and credit exposures, but for different reasons. Long/short equity funds experienced their largest outflow of money since December 2009, losing $7.3 billion. Flows were at a similarly elevated level just one month prior to end 2014.
Disappointing performance appeared to be the driver of redemptions from long/short equity strategies in January. 65% of long/short equity funds had negative returns in the second half of 2014, but these funds accounted for 96% of all net outflows from the strategy in January.Source: ValueWalk