Hedge funds were back in the black in September amid rallies in the underlying markets. The Eurekahedge Hedge Fund Index was up 1.18%1 during the month as global markets trended upwards, war in the Middle East was averted and the US Federal Reserve did not announce the speculated tapering of its asset purchase program. The MSCI World Index gained 3.87%2 during the month.
Total assets under management (AUM) increased by US$4.2 billion during the month, bringing the size of the industry to US$1.91 trillion. Most of the positive impact on total assets in September came from performance as managers gained US$3.0 billion over the course of the month. The industry also witnessed net positive asset flows of US$1.2 billion during the month.
Figure 1: Summary monthly asset flow data since January 2011
Key highlights for October 2013:
- Total assets in the hedge fund industry stand at US$1.91 trillion, just 2% below their historical peak
- Net asset flows for the year reached US$95.3 billion – the highest level og inflows in five years, and an amount reminiscent of the pre-financial crisis days
- Assets in long/short equity hedge funds crossed the US$600 billion mark for the first time since 2008
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1 Based on 45.97% of funds which have reported September 2013 returns as at 10 October 2013
2 The MSCI AC World Index All Core – Local