Investor outflows of US$1.66 billion (€1.46 billion) from the global hedge fund industry in January were offset by strong fund performance which lifted total industry assets to $3.214 trillion.
According to a report from data provider eVestment, assets in hedge funds worldwide rose $40.18 billion in January due to performance helping to bring total assets from $3.176 trillion at the end of 2018 to $3.214 trillion at the end of January.
EVestment’s January 2019 Hedge Fund Asset Flows Report found that multi-strategy hedge funds saw a turnaround in investor sentiment with investors adding $4.34 billion to these funds in January.
This contrasts to the outflows of -$7.87 billion which investors removed from multi-strategy funds in Q4 2018 and the -$19.32 billion investors pulled for the full year 2018.
The report also found that, despite the strong performance of long-short equity hedge funds recently, investors have continued to pull money from these strategies, to the tune of -$5.93 billion.
This was the largest redemption among primary hedge fund strategies and is on top of the -$10.74 billion investors pulled from long-short equity funds last year.
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