European fund managers recorded net asset outflows of US$4.3 billion while registering performance-based gains of US$2.8 billion during last month. Total assets in European hedge funds stood at US$480.9 billion as of June 2019, below their January 2018 high of US$577.5 billion. On a year-to-date basis, European hedge fund managers have seen performance-driven gains of US$13.1 billion while net asset outflows stood at US$32.1 billion over the same period. Net outflows from European fund managers this year have been around the same scale as outflows from the North American hedge fund managers but from an asset base 30% of the size.
Europe has a record level of hedge funds below the High Water Mark, meaning the ability to retain staff is as constrained as it has ever been for European-based managers.