News & Events

Asset Flows Update for the Month of April 2014

Introduction

Hedge funds posted their second consecutive month of negative returns in April with the Eurekahedge Hedge Fund Index down 0.13%1 as global markets continued to falter amid a sluggish start to the year. On a year-to-date basis, hedge funds are up 0.78%, slightly ahead of the MSCI World Index2 which returned 0.75% in the first four months of the year. All hedge fund strategies, with the exception of long/short equities funds posted positive performance-based gains during the month as the larger hedge funds (by asset base) outperformed their smaller peers. Billion dollar hedge funds tracked by Eurekahedge posted performance gains of US$1.3 billion in April while recording net asset inflows of US$6.8 billion.

Final asset flow figures for March revealed that managers incurred performance-based losses of US$2.7 billion while recording net asset inflows of US$13.2 billion as hedge funds continued to attract strong capital allocations from investors in 2014. Preliminary data for April shows that managers have posted performance-based gains of US$0.58 billion while net asset inflows for the month stand at US$9.5 billion, bringing the current AUM of the industry to US$2.09 trillion – the highest level on record.

Figure 1: Summary monthly asset flow data since January 2011

 

Key highlights for April 2014:

  • Hedge funds were up 0.78% year-to-date; total assets of the global hedge fund industry are at a new high of US$2.09 trillion, with net asset inflows for April 2014 year-to-date totalling US$52.4 billion. This is US$2.7 billion higher than for the same period last year.
  • The Eurekahedge North America Hedge Fund Index is up 2.20% year-to-date, outperforming the S&P 500 index which gained 1.93% over this period. On a year-to-date basis, North American fund managers are in the lead having delivered performance-based gains of US$16.0 billion while recording net asset inflows of US$25.4 billion.
  • Long/short equities funds record their 17th consecutive month of positive net asset flows with net capital allocations at US$46.9 billion year-to-date. Total assets in long/short equities hedge funds stand at US$708.7 billion and nearing close to their historical high of US$756 billion reached in December 2007.


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Footnote

1Based on 57.26% of funds which have reported April 2014 returns as at 15 May 2014

2 MSCI AC World Index (Local)