Hedge funds gain modest inflows despite Calpers retreat

Net inflows into hedge funds tracked by data firm eVestment were an estimated $12.6 billion (€9.8 billion) in August, continuing a trend that has seen positive flows every month this year.

The inflow came despite news that Californian pension scheme Calpers, one of the most influential institutional investors in the US, would remove the $4 billion it invests in hedge funds over the next year – a decision that might inspire other institutions to do the same.

Calpers says it is retreating from hedge funds to reduce cost and complexity in its portfolio and there is some evidence that other investors have made similar decisions – net inflows to hedge funds in June and July were below average, according to eVestment. However, the data provider says “August’s increase is a strong signal that demand persists”.

Hedge funds that invest in equities have gathered the most assets this year, with event-driven funds in particular gaining more new money than any other strategy tracked by eVestment.

In total, there was a little over $3 trillion held in hedge funds as of the end of August, according to the data, an increase of 1.6% compared with the previous month – mostly the result of market gains.

©2014 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST