Research

Asset Flows Update

Hedge funds were down in May amid heightened risk aversion and falling global markets. The Eurekahedge Hedge Fund Index lost 1.55% during the month while comparatively the MSCI World Index shed1 9.32% amid broad market declines in all regions.

Total assets under management (AUM) decreased by US$13.7 billion, bringing the size of the industry back below the US$1.75 trillion mark. Most of the declines in assets were due to net negative asset flows, with investors pulling US$8.7 billion from the industry, while performance-based losses accounted for US$5 billion.

Figure 1: Summary monthly asset flow data since January 2010

asset flow data

Key highlights for May 2012:

  • Hedge funds outperformed underlying markets by 7.77% in May.
     
  • CTA/managed futures funds gained 2.55% in a largely negative month.
     
  • Macro hedge funds have raised more than US$25 billion through net positive asset flows so far in the year.

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Footnote

1MSCI AC World Index All Core – USD
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