Hedge fund managers saw net inflows of US$66 billion, during the first half of 2008, bringing their assets under management (AuM) to a solid US$1.95 trillion as at June 2008. These inflows were evident despite harsh movements in the underlying markets, as commodity prices soared (the Reuters CRB Index rose 25%) and equities fell dramatically (the MSCI World Index shed 11.8%) during the period. Furthermore, the slowing of economic growth coupled with rising inflationary concerns negatively impacted investor sentiment, thereby taking a toil on underlying markets. Managers, however, did a good job of protecting capital during the period, as the Eurekahedge Hedge Fund Index remained flat (0.1%).
