After a small decline in October, hedge funds reverted to their winning ways in November with a string of strong performances. The composite Eurekahedge Hedge Fund Index gained 1.85%1 during the month, bringing the November YTD figure to 18.34%.
Total assets under management grew by US$14.9 billion or 1.02% in November, bringing the size of the global hedge funds industry to $1.47 trillion, back to December 2008 level. While performance-based gains for the month stand at US$9.9 billion, the sector also continued to attract capital for the seventh consecutive month with net subscriptions of US$5 billion.
Despite a slight negative performance in October, investors continued to allocate cash to hedge funds, keeping in consideration their recent performances, as well as downside protection, through the financial crisis.
Figure 1 shows the monthly asset flows across the hedge fund industry since the start of 2008.
Figure 1: Summary Monthly Asset Flows Data for 2008-to-date
Hedge funds across all the regions reported positive net flows for November as investors continued to remain bullish on the sector. North American-investing managers attracted the most capital during the month, witnessing...
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1 Based on 51.83% of the funds reporting their Nov-09 returns as at 11 December 2009.