MFA Blog

Report Shows Hedge Fund Industry Trends in AUM and Investor Attitudes

Posted on December 16, 2013

The latest monthly report from Deutsche Bank shows that assets under management in the hedge fund industry exceeded expectations in 2013 and that a number of strategies are top of mind for investors.  Deutsche Bank’s Markets Prime Finance Monthly Hedge Fund Trends report showed that global industry assets had risen to $2.51 trillion at the end of the third quarter.  That number outpaces investors’ prediction of $2.5 trillion in assets by year end.  Investors predicted that number in Deutsche Bank’s annual Alternative Investment Survey.

Other highlights from the monthly report found that equity long/short is the most sought-after strategy.  Finalternatives noted that “such strategies have attracted net inflows of $9 billion year to date and generated performance-based gains of $79 billion.”  The publication also highlighted that European equity long/short managers have been sought after by global investors.

The report also found that private wealth allocators are looking more closely at alternative UCITS funds.  Even though assets in UCITS funds represent only 2% of the €6.6 trillion UCITS market in Europe, “recent growth rates suggest that the gap will narrow in the coming years,” said the report.  “Alternative UCITS have experienced a [compound annual growth rate] of 30% since Q3 2008, while the overall UCITS market has grown 3% over the same time period.  In the past year we have seen considerable demand for the liquid alternative strategies from the private wealth allocators, specifically those in the UK and Switzerland,” the report noted.

Learn more about the recent Deutsche Bank report online here, or read more about it from Finalternatives.