22 November 2017
London
Reporter: Zsuzsa Szabo

Hedge fund industry reaches new highs in Q3


The hedge fund industry has recorded strong performance in Q3 2017, after stumbling in 2016, according to Preqin.

The industry saw net asset inflows totalling $19.2 billion, bringing year-to-date net inflows to $43.9 billion. This means total industry assets have grown by 7.4 percent since the start of 2017.

Equity strategy hedge funds saw a reversal of fortune, recording net inflows of $1.3 billion, following six successive quarters of outflows. However, 40 percent of equity strategy funds experienced inflows, while 43 percent saw outflows.

Credit strategies and multi-strategy funds saw the greatest net inflows in the quarter, securing $13.9 billion and $13.3 billion of net inflows, respectively.

Europe-based fund managers saw net inflows of $17 billion. However, North America-based firms saw net outflows of $8.9 billion, marking the first quarterly outflow of the year.

Amy Bensted, head of hedge fund products at Preqin, said: “Overall, net inflows for the industry are not benefitting all fund managers equally, and less than half of hedge funds in each leading strategy reported net inflows in Q3.”

“Although investors seem to be regaining some confidence in the asset class, there are signs that they are seeking to rebalance or adjust their portfolios more selectively. Nevertheless, each quarter of 2017 so far has seen net inflows of capital, with Q3 inflows nearly matching the strong asset raising seen in Q1, and there is room for optimism over the continued resurgence of the hedge fund industry.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
J.P. Morgan and Citi collaborate on truePTS post-trade platform
15 December 2017 | New York | Reporter: Zsuzsa Szabo
The New-York-based startup processes ecosystem for the global $700 trillion derivatives market
SIFMA: US market requires improved CCP access
15 December 2017 | Washington DC | Reporter: Jenna Lomax
The Dodd-Frank Act has increased the need for US firms to have access to non US swaps trading venues and central counterparties, according to paper by FIA and SIFMA
France raises spectre of European financial transactions tax
15 December 2017 | Paris | Reporter: Jenna Lomax
French President Emmanuel Macron and several ministers have dismissed concerns over the negative effect of an EU financial transactions tax on securities lending revenue
Vekaria exits Credit Suisse
14 December 2017 | Dublin | Reporter: Zsuzsa Szabo
Head of Credit Suisse's Dublin branch Manish Vekaria has left the bank
Cerberus hires new managing director
14 December 2017 | New York | Reporter: Jenna Lomax
Kimmel was previously global head of prime services at Cantor Fitzgerald
SMEs to face new research costs under MIFID II
14 December 2017 | Frankfurt | Reporter: Zsuzsa Szabo
Research services for SMEs will no longer be free of charge when MiFID II comes into force on 3 January 2018
Hedge funds in sprint finish for record-breaking returns in 2017
14 December 2017 | London | Reporter: Drew Nicol
Hedge funds are on track for their best annual revenue since 2013 with average returns of 7.7 percent, according to eVestment research