Hedge Funds Had $9.8 Billion of Inflows in Comeback YearBy
Macro strategies had most inflows while equities had outflows
Industry finished year with $3.21 trillion in assets
Investors tiptoed back into hedge funds last year, committing $9.8 billion of new capital, as managers improved their performance over 2016.
Macro hedge funds led inflows with $10.8 billion in 2017, although the strategy’s performance lagged behind its peers, gaining only 3.9 percent, according to a report Friday by Hedge Fund Research. Equity funds, which gained the most of any strategy amid a stock market rally, saw outflows of $5.4 billion for the year as investors pared their exposure.
Clients came back to relative value in the fourth quarter after fleeing in the first. Assets allocated to the strategy rose $1.32 billion in the last three months of the year, but it wasn’t enough to overcome $5.6 billion in outflows for 2017.
The industry, which suffered $70.1 billion of outflows in 2016, finished last year with a record $3.21 trillion under management.
Here’s the full list of strategy flows for 2017:
|Strategy||Flows 2017||Flows 4Q-2017|
|Macro||$10.8 billion||$660 million|
|Event-driven||$10 billion||$6.95 billion|
|Equity||-$5.4 billion||-$2 billion|
|Relative value||-$5.6 billion||$1.32 billion|