Hedge Fund Assets Cross $1.81 Trillion

Date: Thursday, May 26, 2011
Author: Alex Akesson, HedgeCo.Net

New York (HedgeCo.net) – Hedge funds delivered another month of strong returns aided by favourable market conditions in April 2011 and rallies in underlying markets, according to the May 2011 Eurekahedge Report. Total net flows for the first four months of 2011 to $93.94 billion, exceeding the 2010 total of $66.24 billion.

Total assets under management crossed $1.81 trillion for the first time since the financial crisis as investors continued to allocate capital to hedge funds.

Updated April figures indicate that managers attracted a massive $28.33 billion in April – by far the highest inflow since June 2008.

Almost all regional mandates delivered net gains in April, with the exception of Japanese hedge funds.

Performance-based gains stood at $23.97 billion for April as most funds delivered good performance on the back of favourable market conditions. March asset flows were also revised upward with gains to the tune of $23.85 billion.

Other key highlights for the month of April include:

· Hedge funds see tenth consecutive month of positive returns, gaining 13.48% over this period.

· CTA/managed futures funds up 3.12% in April.

· Funds of hedge funds see first quarter of net positive asset flows since 1Q 2008.

· Asian hedge funds witness twelve consecutive months of net positive asset flows.

· Long/short equity funds have attracted $30.7 billion April YTD.

· Launch activity remains strong with more than 200 funds launched so far in the year.

· Assets in event driven hedge funds crossed $200 billion mark (for the first time or to reach historical highs).

· 43% of FoHFs investors are planning to increase allocations to event driven strategies over the next 3 months…

· 34% of FoHFs investors are planning to increase their exposure to Asia ex-Japan strategies.

Please click here to download the full Eurekahedge Report (3 MB) (subscription required)

Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net