Trends in Hedge Fund Flows

By Hedge Fund Insight staff


  • Minor outflows in January have been followed by net subscriptions of $11bn in February, according to data from Eurekahedge. This brings total assets managed by the hedge fund industry to a new record high of just over $2 trillion.
  • Long/short equities hedge funds recorded their 15th consecutive month of positive net asset flows in February, with net capital allocations to the strategy for 2014 standing at US$19.0 billion.
  • Trend-following strategies posted their ninth consecutive month of net asset outflows in February, and saw redemptions worth US$12.7 billion over this period.
  • Total assets in North American hedge funds reached a new high of US$1.36 trillion with assets growing by US$11.1 billion in the first two months of the year.  Over the last few months at the margin allocators have switched from CTAs and macro managers to Long/Short equity funds within North America. On the whole, North America continues to see strong asset allocations, and as the largest and the most developed hedge fund market this trend is expected to continue. Net asset allocations to the region over the last 12 months stand at US$58.3 billion.
  • Europe remains the only investment mandate to have consistently recorded positive net asset flows over the last 15 months, a sign of the growing investor confidence in the region. Total assets in European hedge funds now stand at U$461.7 billion, bringing them closer to their historical high of US$473 billion reached in December 2007.
  • After four consecutive months of net asset outflows, Latin American fund managers saw net inflows of US$0.3 billion in February. Total assets of the Latin American hedge fund industry stand at US$60.3 billion.
  • CTA/managed futures posted their ninth consecutive month of net asset outflows in February and have seen redemptions worth US$12.7 billion over this time period. Trend-following strategies were the only strategy group to deliver negative returns last year. Net asset flows as at February 2014 year-to-date remain in the red with investors withdrawing US$0.79 billion in the first two months of the year.
  • In 2013, a total of 1,124 new funds were launched while 777 funds reported themselves as liquidated, bringing the current size of the hedge fund industry to 10,757 hedge funds.


2014 year-to-date asset flow by strategy employed


Eurekahedge is the data source for all figures quotes (and the graphic). Please note that near-dated flow data is subject to revisions as laggard funds report to databases.