Investors Added To Hedge Fund Coffers In Q3

Tom Burroughes

22 November 2017

The world’s hedge fund industry logged net inflows of $19.2 billion in the third quarter of this year, taking total inflows since January to $43.9 billion, figures from research firm show. Figures showed, however, that just over a third of specific funds showed net inflows, highlighting how money is only being attracted to certain areas.

Credit strategies and multi-strategy funds logged the greatest net inflows of $13.9 billion and $13.3 billion, respectively, while equity strategies saw net inflows of $1.3 billion in Q3, ending a run of six successive quarters of outflows.

“After five consecutive quarters of net outflows for the hedge fund industry from Q4 2015 to Q4 2016, asset raising has picked up in 2017, with three quarters of net inflows recorded since the start of the year. Stronger performance from the industry has bolstered investor confidence in the asset class, benefiting some managers across all strategies,” Amy Bensted, head of hedge fund products, said.

“Hedge funds pursuing an equities strategy in particular have seen a reversal of fortune in Q3 2017, recording net inflows for the first time in six quarters. In contrast, though, CTAs have seen their first quarterly net outflows since Q4 2016, despite being the only leading strategy to record positive net flows across both 2015 and 2016 as a whole,” she continued.

“Although investors seem to be regaining some confidence in the asset class, there are signs that they are seeking to rebalance or adjust their portfolios more selectively,” she added.