Hedge fund returns were flat to slightly negative in April as most regions and strategies witnessed marginal movements during the month. As managers provided downturn protection amid declining markets globally, the Eurekahedge Hedge Fund Index was down 0.17%1and the MSCI World Index declined 1.62%2.
Total assets under management (AUM) increased by over US$11 billion in April, taking the size of the global hedge fund industry back above US$1.76 trillion. The sector attracted US$10 billion from investors during the month and most of this increase came from positive net asset flows as investors reallocated recently withdrawn capital. Managers also chalked up performance-based gains of US$1.3 billion during the month with most of the gains posted by some of the larger, globally investing hedge funds.
Figure 1: Summary monthly asset flow data since December 2009
Key highlights for April 2012:
The asset-weighted Mizuho-Eurekahedge Top 100 Index increased 0.28% in April 2012, confirming a better month for larger funds.
Hedge funds attracted US$10.4 billion during the month of April.
Assets in North American hedge funds have increased by nearly US$40 billion since the start of the year ...