Hedge funds posted marginally positive returns in February amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.22%1 during the month as some risk aversion returned to the markets due to political and economic developments in Europe. The MSCI World Index was down by 0.07%2 during the month.
Total assets under management (AUM) increased by US$5 billion during the month, bringing the size of the industry to US$1.81 trillion. Impact of performance on total assets was flat to slightly negative as managers lost US$0.3 billion over the course of February. On the other hand net flows were positive for the second month running with US$5.3 billion in net allocations.
Figure 1: Summary monthly asset flow data since January 2011
Key highlights for February 2013:
The Eurekahedge Hedge Fund Index was up 0.22% in February and is up 2.33% year-to-date
23% of early reporting funds attracted assets in February
The Eurekahedge Japan Hedge Fund Index crossed the 200-point mark for the first time to reach its highest level on record