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Hedge Funds Enjoy Asset Inflow in 2012, Despite Weak December

Date: Friday, January 25, 2013
Author: Ahila Karan, ProHedge.co.uk

Latest figures show a net outflow of $9.5bn from the hedge fund industry in December, however over 2012 the industry gained asset flow of $29.18bn.

The eVestment report showed that the industry ended the year with total AUM of $2.6tr, which is 13% shy of peak AUM from 2008.

Equity strategies continue to struggle to prove their value to investors as they experienced a net outflow of over $29bn, The fixed income and credit space appear to be the beneficiaries with inflows of over $58bn. Investors are looking for diversification away from equities and into relative value, macro and multi-strategy.

From a regional perspective, The US is propping up the hedge fund industry, with inflows of $26.99bn as Europe and Asia experienced declines of $33.98bn and 10.78bn respectively.

Year on year the industry grew by 5.9% and a similar growth rate is predicted for 2013, as the industry creeps back up to pre-crisis levels.