Hedge Funds Had $9.8 Billion of Inflows in Comeback Year
Hedge Funds Had $9.8 Billion of Inflows in 2017 in Comeback Year
(Bloomberg) -- Investors tiptoed back into hedge funds last year, committing $9.8 billion of new capital, as managers improved their performance over 2016.
Macro hedge funds led inflows with $10.8 billion in 2017, although the strategy’s performance lagged behind its peers, gaining only 3.9 percent, according to a report Friday by Hedge Fund Research. Equity funds, which gained the most of any strategy amid a stock market rally, saw outflows of $5.4 billion for the year as investors pared their exposure.
Clients came back to relative value in the fourth quarter after fleeing in the first. Assets allocated to the strategy rose $1.32 billion in the last three months of the year, but it wasn’t enough to overcome $5.6 billion in outflows for 2017.
The industry, which suffered $70.1 billion of outflows in 2016, finished last year with a record $3.21 trillion under management.
Here’s the full list of strategy flows for 2017:
Strategy | Flows 2017 | Flows 4Q-2017 |
Macro | $10.8 billion | $660 million |
Event-driven | $10 billion | $6.95 billion |
Equity | -$5.4 billion | -$2 billion |
Relative value | -$5.6 billion | $1.32 billion |
To contact the reporter on this story: Nico Grant in New York at ngrant20@bloomberg.net.
To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Vincent Bielski
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