The global hedge fund sector finished 3Q2010 on a high note as the Eurekahedge Hedge Fund Index delivered a strong 3.37%1 return for September. A surge in risk appetite amid upbeat corporate earnings estimates and a stream of positive economic data led to rallies in the underlying markets. The MSCI World Index advanced 6.74% in the month.
Newly revealed data puts the revised net asset flow figure for August at US$14.7 billion while net subscriptions for September were even higher at US$15.61 billion. This brings the total size of the industry at US$1.59 trillion, a 23-month high. While asset flows have started to pick up as predicted by Eurekahedge analysts, performance-based gains accounted for a massive US$24.3 billion increase in industry assets in September.
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 September:
Hedge funds attracted US$30 billion over August and September based on newly revealed data, taking total assets to just shy of US$1.6 trillion (surpassing November 2008 total AuM).
UCITS III hedge funds continued to attract capital to the tune of US$3 billion in September 2010.
Hedge funds witnessed their best monthly returns in 16 months, up 3.29% in September 2010.
All regions and strategies posted positive returns for September 2010.
Hedge funds across all regions witnessed net positive asset flows in September, with North American funds once again attracting the most assets with US$7.61 billion in net subscriptions. This was the eighth consecutive month of net inflows for the regional managers who have gained US$51 billion over this period. However, in contrast to previous months, the net inflows were…
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1Based on 61.43% of the funds reporting the NAV for September 2010 as of 15 October 2010.