Asset Management

Hedge Fund Inflows Keep Going In Q1

Editorial Staff 24 May 2018

Hedge Fund Inflows Keep Going In Q1

The global hedge fund sector logged another quarter of net new money in the first three months of 2018, continuing a winning streak, figures show.

Hedge funds recorded net inflows of $17 billion in the first quarter of this year, the fifth straight month of inflows, according to Preqin, a firm tracking alternative investments.

The inflow figure represents a “significant increase” compared to the final quarter of 2017, which saw inflows of just $500 million, the firm said. The quarter brings total positive net asset flows to $61 billion since Q4 2016 – the last time the industry saw net outflows – and pushes total hedge fund assets to $3.6 trillion as of the end of the quarter.

Despite negative monthly performance in February and March, commodity trading advisors have seen net inflows totalling $13 billion in Q1 2018, the largest of any leading strategy. By contrast, the largest top-level strategies by assets under management – equity, macro and multi-strategy funds – experienced the largest net outflows of $7.6 billion, $1.3 billion and $500 million respectively.

Geographically, managers based in North America saw the greatest inflows in the quarter, totalling $15 billion, which has driven aggregate assets held in the region to $2.6 trillion (73 per cent of the global industry).


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