Research

Asset Flows Update

Introduction

Hedge funds finished 2012 on a high note as global markets rallied at the year-end and many managers were able to capture the upside on offer. The Eurekahedge Hedge Fund Index was up 1.46%1 during the month, ending the year at a healthy 6.19%. Comparatively the MSCI World Index gained 2.22%2 during the month.

Total assets under management (AUM) increased by US$1.4 billion in December, bringing the size of the industry to US$1.77 trillion. Hedge funds posted performance-based gains of US$9.94 billion in December while net asset flows were at a negative US$8.54 billion.

Figure 1: Summary monthly asset flow data since January 2010

Key highlights for the month of December 2012:

  • The Eurekahedge Hedge Fund Index was up 1.46% in December and up 6.19% in 2012
  • Distressed debt was the best performing strategy in 2012 with gains of 2.36% in December and 13.67% during the year
  • Total industry assets grew by US$64.5 billion in 2012, taking the size of the industry to US$1.77 trillion

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Footnote

1Based on 73.80% of funds which have reported December 2012 returns as at 18 January 2013

2 MSCI AC World Index All Core (Local Currency)

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