Research

Asset Flows Update

Hedge funds posted another month of outperformance in July with the Eurekahedge Hedge Fund Index gaining 0.44%1 during the month. The industry also continued to attract capital for the eighth consecutive month while managers in all regions outperformed their respective underlying market indices. The MSCI World Index2 declined by 2.59% during the month due to concerns of the global economic recovery, the European debt crisis and the US debt ceiling situation.

Total assets under management (AuM) increased by US$16.1 billion in July, bringing the size of the industry to US$1.82 trillion and managers added US$11.8 billion through performance based growth despite the subdued outlook on global markets. Additionally, investors continued to allocate capital during the month with net positive asset flows of US$4.3 billion.

Figure 1: Summary monthly asset flow data since December 2008

Key highlights for the month of July:

  • The hedge fund industry saw US$25 billion inflows and US$20.7 billion outflows
  • All regions outperformed underlying markets for the third consecutive month
  • Hedge funds outperformed global markets by 3.03% in July and remained ahead by 2.35% YTD...

 

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Footnote

1 Based on 82.02% of funds which have reported July 2011 returns as at 22 August 2011
2 The MSCI World AC Index All Core – Local Currency

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