Hedge funds see fall in assets after 2015 disappointment

Arrow down1New investments into hedge funds in February 2016 were just “a trickle” at $4.4 billion (€4 billion), says data provider eVestment, with assets falling below the milestone $3 trillion figure.

Performance losses of $24.5 billion caused overall industry assets under management to drop to $2.94 trillion.

February has historically seen elevated flows into the industry. Over the prior six Februaries, from 2010 to 2015, investors added an average of $22.6 billion in net new capital to hedge funds, according to eVestment.

In February 2015 assets under management were over $3 trillion.

The reduced new investment into hedge funds this February reflects investor dissatisfaction with 2015 returns, the firm says.

Where flows are positive, investors are choosing last year’s winners. The first two months of this year, hedge funds that posted gains of 5% or better in 2015 have received nearly $14 billion in allocations, noted Peter Laurelli, eVestment global head of research.

In February, macro funds were the biggest losers to redemptions, while commodity strategies, fixed-income/credit, and managed futures saw inflows.

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