Bringing you live news and features since 2006 

Hedge fund assets surge to highest level since April

RELATED TOPICS​

The hedge fund industry posted an inflow of USD3.8bn (0.2 per cent of assets) in September 2010, the third straight inflow as well as the sixth in eight months, according to TrimTabs Investment Research and BarclayHedge. 

Assets surged 2.5 per cent to USD1.62trn, the highest level since April.

“September was a good month for hedge fund managers,” says Sol Waksman, founder and president of BarclayHedge. “Nine in ten managers reported a profit for the month, and our hedge fund index increased 3.5 per cent. This is the largest gain since May 2009, and it lifted the index above the October 2007 high-water mark.”

Hedge fund investors were risk averse in September. Equity long only funds redeemed USD829m (1.2 per cent of assets), the heaviest outflow of all fund strategies, while emerging markets funds redeemed USD269m (0.1 per cent of assets), the third outflow in four months. 

Meanwhile, commodity trading advisers hauled in USD5.8bn, the sixth straight inflow as well as the 14th in 16 months. 

In contrast, funds of hedge funds redeemed USD635m (0.1 per cent of assets).

“It won’t surprise us to see hedge fund managers investing aggressively through year-end, which could keep a strong bid under stock prices,” says Vincent Deluard, executive vice president at TrimTabs. “Investors have poured USD16.1bn into hedge funds in the past three months, and managers need to put that fresh cash to work. Also, more than half of managers have failed to poke through their previous high-water marks. In order for these folks to collect performance fees this year, they need to lever up and produce a blockbuster quarter.”

Hedge fund investors continue to pour into debt. Fixed income hedge funds posted an inflow of USD1.3bn (0.7 per cent of assets) in August, the fifth straight inflow. Fixed income funds boast a year-to-date return of 9.6 per cent, far and away the best performance of any hedge fund strategy.

“Fat fixed income inflows could persist for months even though bond ETFs and mutual funds have sucked in a staggering USD710bn since the start of 2009,” adds Deluard. “The Fed just announced it will load up on Treasuries to the tune of USD900bn through Q2 2011, and it’s a rare treat for investors to be able to piggyback a Fed trade policymakers are telegraphing so clearly.”

Latest News

EFAMA has published its latest Monthly Statistical Release for May 2024...
Solactive writes that it has expanded its collaboration with Kiwoom Asset Management by providing the underlying indices to the KIWOOM..
MSCI has announced the launch of MSCI Private Capital Indexes, writing that with growing investor interest in private markets, high..
Matteo Greco, Research Analyst at Fineqia International, writes that bitcoin (BTC) ended the week at approximately USD68,150, marking a 12.1..

Related Articles

Scott Kefer, VictoryEx Capital Holdings
Bailey McCann writes that active ETFs are capturing investor interest, according to the latest data from Morningstar, which finds that...
Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by