Hedge fund investors placed over $35 billion (€30.7 billion) into the market during the second quarter when the industry saw a performance rebound.
However, gross outflows were still higher at $47.8 billion – but net redemptions of $12.2 billion were 65% lower than the previous quarter’s figure.
Hedge Fund Research (HFR) figures showed that outflows from the hedge fund industry’s top firms managing more than $1 billion assets also slowed. In the first quarter this year, overall outflows from these firms reached $31.7 billion. By the end of June, this had dropped to around $9.4 billion.
Kenneth J, Heinz, president of HFR, said the extreme volatility in the first six months of the year had created opportunities for long-short hedge fund performance. Total hedge fund assets including flows and performance reached $3.18 trillion, an increase of $220 billion on the previous quarter.
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