European investors signal return to hedge funds

Hedge-fundEuropean institutions and consultants are turning their attention to hedge funds – an industry that has seen redemptions lately, but also higher performance.

Hedge fund universes made up half of the top viewed universes in April by users of eVestment, according to the firm’s latest report.  Various macro, managed futures, fund of funds, and multi-strategy universes were also in the mix.

The Nasdaq company also found that hedge funds made up eight out of the top ten rising universes amongst its users throughout the month, even though outflows were ongoing.

Hedge funds had an estimated $13.69 billion (€12.16 billion) of withdrawals in March, representing the lion’s share of redemptions for the first quarter of the year that totalled nearly $15 billion, despite investors seeing returns of up to more than 5%. 

The majority of these outflows came from large macro, long/short equity, and managed futures funds which produced negative results last year, according to eVestment which compiled the estimated figures.

According to the April report, BlackRock took over Wellington Management to be the most viewed firm by investors and consultants on its platform.

The US-based investment manager surpassed analysts’ first quarter profit expectations this year, bouncing back after a volatile end to 2018 with net inflows of $65 billion (€57 billion) representing an organic growth of 4%.

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