Hedge funds witnessed a month of healthy returns and positive asset flows in September as the prevailing sentiment remained in the risk-on mode. The Eurekahedge Hedge Fund Index was up 0.96%1 during the month while most underlying markets witnessed rallies on the back of monetary easing announcements by the ECB and the US Federal Reserve. The MSCI World Index was up by 2.29%2 during the month.
Total assets under management (AUM) increased by US$8.1 billion during the month, bringing the size of the industry to US$1.76 trillion. Hedge funds posted performance-based gains of US$5.1 billion as most strategies were profitable. The industry also witnessed net positive asset flows for the second consecutive month as investors allocated a further US$2.9 billion to the industry.