Asset Flows Update

The global hedge fund sector remained healthy through August amid an increasing negative sentiment globally and mixed movements across the markets. The Eurekahedge Hedge Fund Index was up 0.46%1 during the month, bringing the August year-to-date figure to 1.71%; comparatively, the MSCI World Index lost 3.92% with its year-to-date returns at -7.51%.

Total assets under management grew by US$13.4 billion in August, bringing the size of the global hedge fund industry to US$1.54 trillion which represents a gradual but determined upward trend in assets. Performance-based gains for the month stand at US$6.3 billion as managers across most regions and trading styles were able to net in the various opportunities on offer. Net positive asset flows exceeded performance-based gains for only the second time in the last 10 months, accounting for US$7.1 billion of the total growth.  

Figure 1 shows the monthly asset flows across the hedge fund industry since December 2008.

Figure 1: Summary Monthly Asset Flow Data since December 2008

Below are the highlights for the month of August:

  • Hedge funds are ahead of global markets by 8% August YTD.
  • Strong launch activity pushed the number of Asian hedge funds to historical high.
  • Distressed debt hedge funds are up 8.56% August YTD.
  • Assets in UCITS III hedge funds crossed US$130 billion.
  • North American hedge funds grew by US$12.8 billion in August (1.21%).

In terms of regional mandates, North American hedge funds continued to attract the most capital, gaining US$7.4 billion in August, making it the…


The full article is available in the EH Report. 


1 Based on 73.88% of the NAV for August 2010 as at 20 September 2010.