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.