Hedge funds reach record $3.2 trillion AUM

Originally published on 22 September 2017

After a tough run with performance and investor redemptions in the past few years, investors have come back to hedge funds in a big way, adding $13.4 billion to global hedge funds in August. Those new investments coupled with performance increases bring hedge fund industry assets under management (AUM) to a record $3.209 trillion, according to the just-released eVestment August 2017 Hedge Fund Asset Flows Report.
One area investors seem to be showing caution is in emerging markets focused hedge funds. After a string of exceptional performances and a two-month inflow rally in June and July, August saw investors pull back slightly, pulling $1.69 billion from these funds. Some investors might be losing faith that emerging markets funds’ winning streak can continue or may be taking some gains to invest elsewhere, but this is a trend worth watching.
Other interesting points from the report include:

  • Multi-asset hedge funds were big winners in August, with AUM up $7.09 billion during the month, bringing year-to-date (YTD) 2017 inflows to $13.03 billion.
  • Equity funds were also big winners in August, with AUM up $4.4 billion, bringing YTD inflows to $12.16 billion.
  • Among primary strategies, macro hedge funds saw big inflows with $4.36 billion in inflows, bringing YTD inflows to $17.86 billion.
  • Event driven funds saw inflows of $2.1 billion in August, but flows are still negative for the past three months (at -$2.11 billion) and YTD (-$5.37 billion).
  • Among primary strategies, relative value credit, distressed and market neutral equity all saw outflows for the month, although each saw less than $1 billion leave.

The full report can be downloaded here.