Asset Flows Update

It was a positive start for hedge funds in 2023, with industry AuM up $5.1bn in January, reversing December’s $7.8bn decline. This uptick was driven by impressive performance as net outflows were $3.3bn in January, which is encouraging after a challenging 2022 when industry AuM was down over $200bn – driven by $164bn of outflows. By strategy, only multi-strategy attracted inflows, while fixed income posted the largest performance gains ($6.2bn) closely followed by long/short equity ($5.7bn) as investors benefited from January’s US equity rally. This is an encouraging start to 2023, after fixed income and long/short equity had performance losses of $25.1bn and $37.5bn, respectively, in 2022. North America had flat performance gains ($0.6bn) in January and outflows of $1.4bn. Europe posted both the largest performance growth ($6.6bn) and net outflows ($2bn), indicating that the economic outlook and performance prospects in Europe remain as complex as the geopolitical picture for investors

Asset flows data since January 2021

Key highlights for January 2023:

  • Industry AuM up $5.1bn in January.
  • Uptick driven by impressive performance as net outflows were $3.3bn.
  • Multi-strategy funds only strategy to attract inflows in January.
  • Fixed income funds post the largest performance gains.
  • Europe posts both the biggest performance growth and net outflows.

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