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.
Figure 1: Summary Monthly Asset Flow Data since Dec 2008 Click on the image for an enlarged preview
Click on the image for an enlarged preview
Below are the highlights for the month of April:
- North American hedge funds' assets under management crossed the US$1 trillion mark for the first time since November 2008.
- Global hedge funds' assets exceeded the US$1.5 trillion mark and are on track to surpass US$1.75 trillion by year-end.
- Japanese hedge funds gained 2.93% in the month and 7.17% YTD – the best April YTD returns since 2004.
- Distressed debt hedge funds saw 13th consecutive month of positive returns, up 50.34% since March 2009
In terms of regional mandates, North American managers continued to post the strongest growth both in terms of asset flows and performance-based gains. Net subscriptions in April amounted to...
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