Saturday, April 20, 2024

Hedge fund outflows deepen in August

  • Fixed income/credit hedge funds popular with LPs over the summer: eVestment
  • See AFI’s dedicated sections for FLOWS and MULTI-STRATEGY news

Hedge fund outflows deepened in August, with only fixed income/credit hedge funds in vogue with allocators.

The strategy segment has seen $2.3bn of net inflow since May while the overall industry has suffered net redemptions of $36bn.

“The evolving global rate environment may be making opportunities for fixed income/credit hedge funds more attractive,” according to research from eVestment. Net inflows were $1.1bn in August but remain negative $3.7bn YTD.

Those inflows contrasted with a net outflow of $6.1bn from hedge funds globally last month, extending the total so far this year to $50.1bn.

Multi-strategy flows were flat and are positive $2.4bn YTD. “Performance-wise, however, the largest multi-strategy managers have been performing relatively well, returning an average of 5.3% through August.”

Equity strategies had the heaviest net outflows in August, worth $3.5bn, putting them negative $38.1bn YTD, meaning they are responsible for most of the industry outflow.