Excellent performance-based gains and markedly improved capital inflows in March generated robust growth in the global hedge fund industry, bringing the total assets under management to just under US$1.5 trillion at the end of 1Q2010. The Eurekahedge Hedge Fund Index advanced 2.50% in the month as managers captured most of the upside in the trending underlying markets – the MSCI World Index gained 5.93%.

Performance-based gains amounted to US$2.8 billion, reflecting the upward trends seen across most asset classes in March which were largely beneficial to managers across most regions. The month also experienced healthly inflows of capital worth US$2.6 billion.

Figure 1 shows the monthly asset flows across the hedge fund industry since the end of 2007.

Figure 1: Summary Monthly Asset Flow Data since 2008
Click on the image for an enlarged preview

Below are the highlights for March:

• Hedge funds up 2.5% in March, with all regional and strategic indices delivering positive returns for the month.

• Latin American hedge funds witnessed 12th straight month of net inflows, gaining US$10.5 billion.

• Japanese hedge funds…

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