Research

Asset Flows Update

Introduction

Hedge funds edged even higher in February to close at another record high, with the Eurekahedge Hedge Fund Index gaining 1.57%1, though underperforming underlying markets as the MSCI World Index2 gained 5.47% after equities surged higher during the month. A return of investor risk appetite and easy monetary policy pushed equities into record territory, while volatility faded away with investors gaining further confidence in the market’s strength.

Final asset flow figures for January revealed that managers reported performance-based gains of US$24.8 billion while recording net asset outflows of US$12.4 billion. Preliminary data for February shows that managers have posted performance-based gains of US$8.8 billion while recording net inflows of US$12.3 billion, bringing the current AUM of the global hedge fund industry to a total of US$2.17 trillion – nearly US$30.0 billion higher than the record US$2.14 trillion reported last year.

Figure 1: Summary monthly asset flow data since January 2011
 

Key highlights for February 2015:

  • Hedge funds grew their asset base by over US$30 billion in the first two months of 2015 as investors allocated US$12.3 billion in February alone.
  • Europe investing funds have delivered the best returns globally and are up 2.29% for the month, led by Eastern Europe focused funds which gained 12.49%.
  • CTA/managed futures funds have reported asset inflows of US$6.3 billion for February year-to-date, reversing a trend of nearly uninterrupted outflows since 2H 2013.
  • North America mandated hedge funds have grown their asset base by US$235 billion since the start of 2013, accounting for roughly 67% of all global assets into hedge funds. For more details please view our ‘2014 Overview: Key Trends in North American Hedge Funds’ report.
  • Event driven funds have reported performance-based gains of US$1.6 billion during the month, corresponding to returns of 2.90%, the highest out of all strategic mandates.

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Footnote
1 Based on 41.30% of funds which have reported February 2015 returns as at 12 March 2015
2 MSCI AC World Index (Local)
 
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