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“The outflow in October was only the second for hedge funds this year,” said Sol Waksman, president and founder of BarclayHedge. “Hedge funds have taken in $49.4 billion so far in 2013, a sharp reversal from the outflow of $12.9 billion outflow in the same period last year.”
“Industry assets stood at a five-year high of $2.0 trillion, according to estimates based on data from 3,348 funds. Assets are up 15.3% in 2013 but are down 16.1% from the all-time peak of $2.4 trillion in June 2008,” Waksman said.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report reported that the industry gained 1.7% in October, underperforming the S&P 500, which gained 4.6%. Equity Long Only hedge funds gained 1.9% in October, down from 5.9% in September. Equity Long Bias funds, meanwhile, gained 2.3% in October, down from a 3.1% gain in September.
Funds of hedge funds shed $1.2 billion (0.2% of assets) in October, adding to a $2.6 billion outflow in September. “Outflows from funds of funds have been relentless,” noted Waksman. “Investors pulled money out of them in 22 of the past 24 months."
Meanwhile, the monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds that only 18.3% of hedge fund managers were bearish on the S&P 500 in November, the lowest level this year. Two-thirds of survey respondents expect equities to outperform bonds and precious metals over the next six months. A similar proportion expects developed markets to outpace emerging and frontier markets in the same period.
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.
