Hedge funds raise nearly $8bn in March as returns grow

Hedge funds inflowsInvestors allocated $7.9 billion (€7.5 billion) in new money to hedge funds in February following a “string of positive results”.

The industry posted a 2.63% return in the first quarter of the year, including 0.33% in March, according to eVestment.

In the past 12 months to the end of March returns stood at 8.48%, while in all of 2016, hedge funds returned 5.61%.

The research firm said that “after a bumpy period, investors are giving renewed attention to hedge funds following this string of positive results”.

March’s performance results may increase investor interest even more, said eVestment.

‘Quantitative direction equity’ and long/short equity strategies were two of the strongest performers, returning 0.77% and 0.74%, respectively, in March.

China-focused funds returned 2.7% in March and 8.82% for the quarter, while funds focused on Japan and Brazil both turned negative in March, although their quarterly performance numbers were still in positive territory.

But after two consecutive negative months, commodity funds were the most negative of any asset class or primary strategy in the year so far, with -1.12% returns in March and -0.75% returns for the first quarter.

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