23 Nov 2017 Growing investor confidence in hedge funds
Recent positive performance has strengthened investor confidence in hedge funds. From Q4 2015 to Q4 2016, the industry went through tough times and experienced 5 consecutive quarters of net outflows. This trend reversed beginning of 2017 with now a third quarter of net inflows. On a strategy level, credit and multi-strategy funds received most investor allocations. After 6 consecutive quarters of net outflows, also equity hedge strategies finally experienced net inflows again in 2017 Q3. CTAs have seen a quarterly net outflow in 2017 Q3, despite being the only leading strategy to record positive net flows in 2015 and 2016.
Total industry assets have increased by 7.4% since the start of 2017 and now stand at 3.4 trillion USD. Many hedge fund selectors still seem to be chasing performance: there’s a clear link between past performance and later net asset flows.
With reference to Preqin: Read more