Research

Asset Flows Update

Introduction

Hedge funds witnessed a month of healthy returns and positive asset flows in November as the prevailing sentiment turned towards the risk-on mode. The Eurekahedge Hedge Fund Index was up 0.42%1 as most underlying markets witnessed trend reversals in the middle of the month. Comparatively, the MSCI World Index was up by 1.05%2 during the month.

Total assets under management (AUM) increased by US$7.7 billion during the month, bringing the size of the industry to US$1.77 trillion. Hedge funds posted performance-based gains of US$1.8 billion as most strategies were in the black in November. Net positive asset flows were also witnessed as investors allocated net US$5.9 billion to the industry.

Figure 1: Summary monthly asset flow data since January 2010
 

Key highlights for November 2012:

  • Hedge funds attracted US$5.9 billion in November, total size of the industry now stands at US$1.77 trillion
  • The asset-weighted Mizuho-Eurekahedge Asia Pacific ex-Japan Index was up 11.60% as at end-November 2012 and we expect it to finish this year with gains of more than 13%
  • Distressed debt funds are up 10.51% November YTD and have gained 88.5% since March 2009; European funds focused on distressed debt have posted returns of more than 20% YTD

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1 Based on 45.10% of funds which have reported November 2012 returns as at 13 December 2012
2 The MSCI AC World Index All Core – USD
 
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