Hedge funds attracted $55 billion (€40 billion) of net new money in the first quarter of the year, more than in any quarter since 2007.
As in the previous six months, equity-focused funds were the most successful at raising assets in the first quarter, according to the figures from research firm eVestment.
However, the industry failed to overtake its previous peak level of assets under management, achieved in 2008, due to negative performance in March that lost the sector $6.5 billion.
“The rate spike in May 2013 has proven to be the inflection point when investor interest shifted from credit to equity hedge funds,” says the firm. “In the nine months since, equity inflows have been more than double those into credit strategies.”
eVestment says its data shows that institutional investors are becoming increasingly influential in determining the make-up of the hedge fund sector.
“There has been a true division of how investors are using the hedge fund industry,” says the firm. “It appears macro and managed futures strategies are on one side while alternative exposures to more traditional markets (and their derivatives) are on the other. This is great evidence of the continuing rise of institutional investors as the primary direct investors in the hedge fund industry.”
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