Hedge Fund Asset Flows (eVestment)

November 2013

KEYWORDS: eVestment, asset allocation, asset flow, inflows, Emerging Markets, equity hedge funds

Authors:

eVestment

Organizations:
  • eVestment

Summary:

1) Investors again allocated heavily to the industry in October, the fourth consecutive month of strong inflows. The $9.3 billion added during the month makes a total of $56.4 billion added during the streak and nearly $60 billion added for the year.

2) Equity hedge fund flows outpaced credit strategies for only the second month in 2013. Allocations of $18.4 billion in the last four months have pushed YTD flows positive, the group has not had a year of positive flows since 2010.

3) Credit fund flows were positive for the 12th consecutive month, but at their second lowest level of the year. Investor interest in MBS strategies appears negative as the group weighed on overall credit fund flows in October.

4) Macro fund flows were positive again in October following September’s large allocations. With recent performance far better than earlier in the year it appears the group’s flows may turn positive by year end.

5) October marked emerging market hedge funds’ first three month string of inflows, a feat not seen since early 2010. Investor interest in European market exposure has been on a rise of late with $2.9 billion added in October and $7.3 billion in the last three months.

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