Hedge fund assets under management (AUM) – which have been struggling to rise significantly above $3 trillion (€2.68 trillion) – totalled $2.26 trillion at the end of September.
Eurekahedge, which compiles hedge fund figures, said the industry had seen $17.6 billion of inflows during the year up to the end of September – a steep drop from the $93.4 billion growth over the same period in 2015. The firm said this was the weakest pace of AUM expansion since 2009.
A recent report by eVestment, put AUM at $3.02 trillion at the end of August and noted that hedge funds had been “bedeviled” by redemptions this year.
Meanwhile, the industry has seen more fund liquidations than launches: 548 closures compared to 500 launches, the Eurekahedge said.
Returns from the hedge funds that reported their figures to Eurekahedge were 3.35% for the year until the end of September and 0.50% for the month.
The majority of positive performers during the month were long/short equity, though distressed debt was the best-performing strategy, returning 1.07%.
Japan hedge funds led performance among regional mandates with a 1.35% return.
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