“Hedge fund inflows slowed sharply in the third quarter,” said Sol Waksman, president and founder of BarclayHedge. “The industry raked in $82.1 billion in the first half of 2014 — more than in the previous three years combined — but inflows subsided to $12.6 billion in the third quarter.”
Industry assets stood at a six-year high of $2.38 trillion in September, according to estimates based on data from 3,490 funds. Assets climbed 18.8% in the past 12 months and are down just 2.4% from the all-time high of $2.44 trillion in June 2008.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry lost 1.3% in September, the worst return in 15 months, but it outperformed the S&P 500, which lost 1.4%. In the past 12 months, hedge funds returned 10.3%, while the S&P 500 gained 19.7%.
“Macro funds performed best in September, gaining 1.2%, while Distressed Securities funds had the strongest inflows at $1.7 billion,” said Waksman. He also noted that despite superior returns in September, Macro funds have the largest redemptions year-to-date ($6.3 billion) and in the past 12 months ($9.8 billion).
The monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds managers were more optimistic on stocks in October than they had been all year. A majority of respondents expects developed markets to outperform emerging and frontier markets over the next six months, a trend that has persisted for 20 consecutive months. Bullishness on gold fell to its lowest point in 17 months.
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.