Research

Asset Flows Update

Hedge funds witnessed negative returns in June, bringing an end to their seven month winning streak since November 2012. The Eurekahedge Hedge Fund Index was down 1.45%1 during the month as global markets reverted to ‘risk-off’ mode amid speculation that the US Federal Reserve will slow down its asset purchase program. The MSCI World Index was down by 3.10 %2 during the month.

Total assets under management (AUM) declined by US$21 billion during the month, bringing the size of the industry to US$1.89 trillion. Most of the negative impact on total assets came from negative performance in June as managers lost US$18.84 billion over the course of the month. The industry also witnessed net negative asset flows of US$2.12 billion during the month.

 

Figure 1: Summary monthly asset flow data since January 2011

 

Key highlights for June 2013:

  • Hedge funds end their 7 month winning streak, down 1.45% in June
  • Assets under management declined by US$21 billion in June and currently stand at US$1.89 trillion
  • Launch activity picks up with more than 300 funds launched so far in the year

 

The full article is available in The Eurekahedge Report accessible to paying subscribers only.

 

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Footnote

1Based on 49.70% of funds which have reported June 2013 returns as at 11 July 2013
2 The MSCI AC World Index All Core – USD

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