Hedge funds posted their best performance in the last 12 months, up 1.79% with fund managers delivering performance-based gains of US$15 billion and recording net asset inflows of US$11 billion during the month, according to the latest Eurekahedge Report. This brings the current AUM of the global hedge fund industry to US$2.03 trillion — a new record high.
Additional findings include:
- Long/short equities hedge funds recorded their 15th consecutive month of positive net asset flows, with net capital allocations to the strategy for 2014 standing at US$19.0 billion.
- Trend following strategies posted their ninth consecutive month of net asset outflows in February, and saw redemptions worth US$12.7 billion over this period.
- Total assets in North American hedge funds reached a new high of US$1.36 trillion with assets growing by US$11.1 billion in the first two months of the year.
- Japan investing hedge funds recorded their second consecutive month of negative returns, down 1.12% year-to-date.
- Latin America focused hedge funds have outperformed the MSCI EM Latin America Index by over 6% on a year-to-date basis.
- Distressed debt investing hedge funds delivered their eighth consecutive month of positive returns – up 2.25% during the month and 3.37% year-to-date.
- In 2013, a total of 1,124 new funds were launched while 777 funds reported themselves as liquidated, bringing the current size of the hedge fund industry to 10,757 hedge funds.