Inflows for Europe’s hedge fund industry were positive in Europe and took advantage of positive returns in May.
Total inflows – including for Asia and the Americas – were US$1.9 billion, almost four times greater than in April.
While hedge funds returned 0.4% on average, this represented a “dip” from the month before, according to data from alternatives fund administrator Citco.
The positive net inflows were from investors in the Americas and Europe, while funds situated in Asia saw outflows. The Americas led, with $1.9 billion of inflows, then Europe with $600 million. Asia saw outflows of $600 million.
According to Citco, 48% of funds administrated by the firm had positive returns in May, down from 65% in April.
The rate of return spread widened to 8.6%, showing signs of increased returns volatility
Equities strategies had the highest return, at 0.9% on a weighted-average basis.
In a Q2 forecast, Citco said capital outflows from hedge funds were expected to climb, with the current projection being $14.9 billion.
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