Net inflows into hedge funds in the year up to the end of September have exceeded $95 billion (€70 billion), the highest level in five years.
The amount of net new money flowing into hedge funds is “reminiscent of the pre-financial crisis days”, says Eurekahedge, a data provider that monitors flows.
Total assets in the hedge fund industry now stand at $1.9 trillion, according to the firm, only 2% less than the highest ever level. Growth in September was due mainly to market growth, with a rise in the index of hedge funds tracked by Eurekahedge leading to about $3 billion in gains.
“The Eurekahedge Hedge Fund Index was up 1.18% during the month as global markets trended upwards, war in the Middle East was averted and the US Federal Reserve did not announce the speculated tapering of its asset purchase program,” says the firm.
However, hedge funds did not perform so well compared to other asset classes in September, lagging well behind the MSCI World Index, which gained 3.87% during the month.
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