“The redemptions of $4.1 billion in the first two months of this year stand in dramatic contrast to the inflow of $31.6 billion in the same period last year,” said Sol Waksman, president and founder of BarclayHedge. “In the past 12 months, hedge funds added $39.2 billion, down 57% from $91.4 billion in the previous twelve-month span.”
Hedge fund industry assets edged up to $2.49 trillion in February from $2.47 trillion the month before, according to BarclayHedge's estimate based on data from 3,600 funds.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry gained 2.2% in February, its best performance in two years. Nevertheless, it underperformed the S&P 500, which rose 5.5%.
“Fixed Income funds had their best showing in sixteen months, rising 1.2% in February," said Waksman. “Multi-Strategy funds had the strongest inflows in February, taking in $2.0 billion.”
The latest TrimTabs/BarclayHedge Hedge Fund Sentiment Survey finds optimism on U.S. stocks dipped to a six-month low in March, while bearishness rose by the highest amount in 14 months. Three-quarters of managers expect developed markets to outperform emerging and frontier markets in the next six months, while a slim majority expects stocks to outperform bonds and precious metals.
The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Hedge Fund Flow Report provides detailed analysis of these flows as well as relevant topical studies. Click here for further information.
BarclayHedge is a leading hedge fund data vendor and one of the foremost sources for proprietary research in the field of alternative investments. From its origin as a research specialist and performance measurement firm, BarclayHedge has developed complete client services as a publisher, database and software provider, and industry consultant.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit us here.