Hedge fund industry reaches new highs in Q3
22 November 2017 London
Image: Shutterstock
The hedge fund industry has recorded strong performance in Q3 2017, after stumbling in 2016, according to Preqin.
The industry saw net asset inflows totalling $19.2 billion, bringing year-to-date net inflows to $43.9 billion. This means total industry assets have grown by 7.4 percent since the start of 2017.
Equity strategy hedge funds saw a reversal of fortune, recording net inflows of $1.3 billion, following six successive quarters of outflows. However, 40 percent of equity strategy funds experienced inflows, while 43 percent saw outflows.
Credit strategies and multi-strategy funds saw the greatest net inflows in the quarter, securing $13.9 billion and $13.3 billion of net inflows, respectively.
Europe-based fund managers saw net inflows of $17 billion. However, North America-based firms saw net outflows of $8.9 billion, marking the first quarterly outflow of the year.
Amy Bensted, head of hedge fund products at Preqin, said: “Overall, net inflows for the industry are not benefitting all fund managers equally, and less than half of hedge funds in each leading strategy reported net inflows in Q3.”
“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. Nevertheless, each quarter of 2017 so far has seen net inflows of capital, with Q3 inflows nearly matching the strong asset raising seen in Q1, and there is room for optimism over the continued resurgence of the hedge fund industry.”
The industry saw net asset inflows totalling $19.2 billion, bringing year-to-date net inflows to $43.9 billion. This means total industry assets have grown by 7.4 percent since the start of 2017.
Equity strategy hedge funds saw a reversal of fortune, recording net inflows of $1.3 billion, following six successive quarters of outflows. However, 40 percent of equity strategy funds experienced inflows, while 43 percent saw outflows.
Credit strategies and multi-strategy funds saw the greatest net inflows in the quarter, securing $13.9 billion and $13.3 billion of net inflows, respectively.
Europe-based fund managers saw net inflows of $17 billion. However, North America-based firms saw net outflows of $8.9 billion, marking the first quarterly outflow of the year.
Amy Bensted, head of hedge fund products at Preqin, said: “Overall, net inflows for the industry are not benefitting all fund managers equally, and less than half of hedge funds in each leading strategy reported net inflows in Q3.”
“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. Nevertheless, each quarter of 2017 so far has seen net inflows of capital, with Q3 inflows nearly matching the strong asset raising seen in Q1, and there is room for optimism over the continued resurgence of the hedge fund industry.”
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