Hedge funds posted marginally positive returns in May amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.32%1 during the month as some risk aversion returned to the markets leading to mid-month trend reversals. The MSCI World Index was down by 0.45%2during the month.
Total assets under management (AUM) increased by US$3.1 billion during May, bringing the size of the industry to US$1.88 trillion. Impact of performance on total assets was slightly negative in May as managers lost US$1.5 billion over the course of the month. On the other hand net flows were positive for the fifth month running with US$4.6 billion in net allocations.
Figure 1: Summary monthly asset flow data since January 2011
Key highlights for May 2013:
Hedge funds witnessed 5th consecutive month of net allocations & 7th consecutive month of positive returns – up 4% May year-to-date
Net positive asset flows for 2013 currently stand at US$56.9 billion - total size of the industry reaches US$1.88 trillion
More than 80% of Asian hedge funds remain in positive territory May year-to-date