Research

Asset Flows Update

Hedge funds continued to attract capital through net positive asset flows in April while also posting excellent performance-based gains. The recent momentum saw industry assets cross the US$1.5 trillion mark, with the sector poised for further growth in the coming months. The Eurekahedge Hedge Fund Index advanced 1.24%1  in April amid volatile market conditions, outperforming the underlying markets as the MSCI World Index declined by 0.16% in the month.

Assets under management grew by US$6.7 billion (0.6%) in April to stand at US$1.53 trillion. The increase in assets last month can be largely attributed to the positive performance as healthy returns across the board delivered growth of US$8.5 billion. April also witnessed the third consecutive month of net inflows, gaining US$1.8 billion.

Figure 1 shows the monthly asset flows across the hedge fund industry since December 2008.

Figure 1: Summary Monthly Asset Flow Data since Dec 2008

Click on the image for an enlarged preview

Below are the highlights for the month of April:

  • North American hedge funds' assets under management crossed the US$1 trillion mark for the first time since November 2008.
  • Global hedge funds' assets exceeded the US$1.5 trillion mark and are on track to surpass US$1.75 trillion by year-end.
  • Japanese hedge funds gained 2.93% in the month and 7.17% YTD – the best April YTD returns since 2004.
  • Distressed debt hedge funds saw 13th consecutive month of positive returns, up 50.34% since March 2009

In terms of regional mandates, North American managers continued to post the strongest growth both in terms of asset flows and performance-based gains. Net subscriptions in April amounted to...

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Footnote

1 Based on 65.74% of the funds reporting their NAV for April 2010 as at 15 May 2010.
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