Hedge funds edged even higher in April to close at another record high, with the Eurekahedge Hedge Fund Index gaining 0.93%1 . However, hedge funds underperformed underlying markets as the MSCI World Index2 gained 1.25%. Easy monetary policy in Japan and Europe continued to push regional equities into record territory, while US market volatility rose with increasing uncertainty over the Federal Reserve’s timing of interest rate hikes and the outcome of the Greek talks.
Final asset flow figures for March revealed that managers reported performance-based gains of US$15.1 billion while recording net asset inflows of US$1.9 billion. Preliminary data for April shows that managers have posted performance-based gains of US$0.4 billion while recording net inflows of US$7.7 billion, bringing the current assets under management (AUM) of the global hedge fund industry to a total of US$2.21 trillion – roughly US$68 billion higher than the 2014 record of US$2.14 trillion.
Figure 1: Summary monthly asset flow data since January 2011
Key highlights for April 2015:
- Hedge funds returned US$59.5 billion in performance-based gains for April 2015-year-to-date, their highest month on gains on record for year 2015, which brings the total industry AUM to a record high of nearly US$2.2 trillion.
- Asian hedge funds were up 5.88% in April and 9.40% year-to-date, and have increased their AUM base by US$13.3 billion since the start of the year.
- European hedge funds crossed the US$500 billion mark for the first time on record, and are up 4.78% year-to-date.
- Long/short equities funds performed the best for April and 2015 year-to-date across all strategic mandates reporting 2.40% and 5.66% respectively.
- North American managers lead in terms of net investor inflows recording US$10.8 billion in new allocations, roughly one-third the level seen for the same period last year.
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