Hedge fund flows were negative in June, though “some enthusiasm” for emerging markets was seen, data suggests.
Investors removed nearly $7 billion (€6.05 billion) from hedge funds last month, though flows for the year were still positive.
Year-to-date at the end of June, the industry had seen $20.65 billion of inflows and industry assets under management were $3.120 billion, eVestment reported.
June and May data showed a rising interest in emerging market hedge funds, mainly credit strategies.
“The six months of very strong relative returns from EM [emerging markets] strategies compared to their developed markets peers appears to have drawn some interest from investors,” according to the eVestment ‘Hedge fund industry asset flow report’ for the second quarter.
Two consecutive months of “strong inflows” into the sector had not happened since mid-2016 and before that since mid-2015.
The year-to-date flow into emerging markets was $1.22 billion, of which $840 million was in June.
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