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Q2 Hedge Fund Asset Flow Summary
HedgeFund.Net has compiled Q2 asset flow trends in the hedge fund industry. Surprisingly, in Q2 the bulk of the increase in AUM (a 5.9% increase to $1.8 trillion) was primarily performance driven rater than coming from investor flows. The trend of outgoing investor flows seems to have moderated but as of June was still negative. It is possible that at the market's peak in July, investors finally starting allocating capital to select performing strategies, just as the market was peaking. And as anyone within earshot of a hedge fund in 2008 will attest, money flows out much faster than in. If the same investors are bitten again once the melt up has no more room to grow, it should get quite interesting.
As for Fund of Funds: the casket beckons.
Q2 2009 asset flow overview commentary:
- The total estimated assets managed by hedge funds, excluding double counting of assets in funds of funds, increased by 5.9% in Q2 2009 to $1.792 trillion.
The increase was mainly driven by performance, but investor flows turned to a net inflow in May and June. May showed the first sign that investors were allocating more than they were redeeming with a net inflow of $16.0 billion. The trend continued in June as net inflows increased to $18.7 billion. For the quarter, total assets increased $99.2 billion. Performance gains accounted for a $124.2 billion increase while investor flows accounted for a net outflow of $25.0 billion. The investor’s net outflow for the quarter was due to large redemptions in April not being surpassed by the net inflows in May and June.
- In the first half of 2009, total hedge fund assets fell 7.3%. Performance added $139.7 billion while investors accounted for a net outflow of $280.6 billion.
It is important to note that investor outflows appeared to peak in December 2008 and since then the trend has slowly reversed, led by positive performance.
- Hedge fund investor flows appear to have turned a corner in May and June, though it also appears this trend has been primarily performance driven, with a few exceptions.
Emerging markets have produced some of the best performance in 2009 and have also seen the highest rates of investor allocations. Allocations into equity markets rose at an increasing rate towards the end of the quarter, however, market neutral equity funds had allocations increase at a faster rate than long/short equity strategies, which tend to be biased towards the long side.
The exceptions include CTA/Managed futures products which have had mediocre performance in 2009, but have attracted assets at an above average rate, most likely due to the positive performance generated by these funds in 2008. Convertible arbitrage managers have had excellent performance in 2009, but net allocations have been slow to show an increase in investor confidence. Convertible arbitrage funds had a huge exodus in assets in 2005 along with negative performance.
- Funds of funds appear to have not turned the corner quite as well as hedge funds in Q2 2009.
Outflows occurred at a far greater pace throughout the quarter. Even as hedge fund investor allocations were net inflows in May and June, funds of funds continued to see net investor redemptions in both months. It is important to watch the coming months to see if this trend continues as this is the first noticeable indication that large investors are actively investing directly into hedge funds while removing money from funds of funds. Historically, FoFs accounted for a range of 47-50% of hedge fund investments. At the end of Q2 2009, this percentage fell to 44%.
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http://www.marketwatch.com/story/recovery-begins-but-recession-leaves-scars-imf-2009-08-18 IMF officialy anounced the recession to be over .... i mean what the fuck ?????
Check the author's name (Rex Nutting) ... Nature imitating Art ?
PS: I like Kant, too ... he struggled to ask the right Qs.
Check the author's name (Rex Nutting) ... Nature imitating Art ?
PS: I like Kant, too ... he struggled to ask the right Qs.
Nothing ( Rex ) it a certified moron, as is the whole MW crew; but IMF chief is even a bigger one; they really must be desperate to call the end.
Bagdad Bob declaring Iraqi victory amid US tanks rolling into town.
Sweet.
"The economy is healing, but not yet healed."
Sounds like a shaman or witch doctor is running the show.
150% propaganda.
Remember those images of Bagdad Bob anyone?
I feel more and more reminded of this guy when listening to any of the clowns from xyz global propaganda ministry.
Don't get fooled.
Save, save, save.
If Friday's and Monday's market actions weren't enough proof of liquidity issues, I don't know what other proof people need to see.
Friday and Monday were major so called "liquidity events".
But not the kind we're used to.
Credit is tighter than a 95 y/o nun. Pardon the visual.
http://www.hedgeindex.com/hedgeindex/en/default.aspx?cy=USD http://www.hedgeindex.com/hedgeindex/en/indexoverview.aspx?indexname=HED...
Is anyone else having issues with 'Today's Most Popular' and 'Today's Top Contributor' posts? I know ZH had issues a few minutes back. Are you guys running on your backup server?
today's most popular seems to be mixed with news from RANSquawk.
edit: seems fixed
Check the author's name (Rex Nutting) ... Nature imitating Art ?
PS: I like Kant, too ... he struggled to ask the right Qs.
can someone explain this to me; AXL +98% move today
GM pays their bills.
AXL expects $210 million payment.
In other news.. GM is increasing production and hiring workers back.
Cash for clunkers worked. Get it? Giving people a government rebate to buy a new car when they didn't bite with lower prices, industry incentives or 0% financing is WORKING.
Let's see what else can be fixed with cash.
I need a new TV. How about cash for clunker TVs to get a new flat screen?
that explanation doesn't hold any water; C-4-C is already losing interest AND cap and trade is in play now, so i have no fucking idea who bought this stock, but im sure as hell its not buy and hold its buy, and they sell and then short. And GM is out-sourcing the factories to china and they will only keep app. 40% of industrial capacity in the US. Even-though your explanation is logical its a no go.
The whole sector is a crap shoot. Chrysler/Fiat is expanding production in Mexico. They're building the subcompact Fiat 500 there. That's all people will be able to afford soon.
80% or so of new car purchases from "cash for clunkers" went into foreign made cars.
UAW must be screaming mad.
As for myself, I'm buying another clunker and paying cash.
No loans, no payments.
Why anyone would finance a depriciating asset that loses 25 to 40% of its value once driven off the lot and especially in this economy is beyond me.
It's beyond anyone that has a brain I imagine.
Market action today is good for my oil trades.
You're still long on shorting the China bubble?
only Oil. liquidated rest of my positions this morning after i saw that HSI ended up in positive territory. will load again when INDU and SPX show signs of declining for more than 1 day. And will load up RE shorts in next couple of day and put a time limit on those. That's the first sector that goes ka-boom when Chinese gov halts massive credit. Big cities are 500% over-built and mass amount of workers are going back to the country. taking all that into equation; shorting RE is a pretty safe bet. Of course also shorting Industry components. China's all fucked up now, with no demand from the US, and with no long term stability in domestic consumption. Like twilight zone. And of course financial; but I'm gonna go short on those when i see substantial down move in the US equities.
agumented risk adjustemnt
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions