Large Hedge Funds Attract Fresh Capital In Q1
Wednesday, May 11, 2011
Credit Suisse, in collaboration with Dow Jones, has released its latest hedge
fund index for April and examined the industry's performance in the first three
months of 2011, in its latest quarterly Hedge Fund Industry Review.
For Q1, hedge funds, as measured by Dow Jones Credit Suisse's Hedge Fund
Index, were up 2.2% having recorded positive gains in each month of the quarter,
statistics released on May 3 show.
The Q1 report shows that USD10.1bn in capital inflows were received by the
industry in the first quarter. If this pace is maintained for the rest of 2011, the industry is on track to double the asset inflows received in 2010, the paper said.
Global Macro funds saw the largest inflows in the first quarter, gaining USD3.3bn
followed by Fixed Income Arbitrage (USD2.9bn) and Managed Futures (USD2.8bn).
Including performance gains, current hedge fund industry assets under management
(AUM) grew to USD1.8 trillion as of March 31, 2011, up from USD1.7 trillion
on December 31, 2010.
Finally the report shows that large hedge funds (those with over USD500m) dominated
asset-raising in the first quarter with over USD12bn of inflows while smaller
funds experienced net outflows.
“After a downturn mid-month, the Dow Jones Credit Suisse Core Hedge Fund
Index rebounded to finish up 1.44% in April. Managed Futures was the best performing
sector, gaining 4.78% for the month as trading models successfully picked up
on reversals in market movements across sectors," Oliver Schupp, President
of Credit Suisse Index, said. Long/Short Equity in the Core Hedge Fund Index
has generated the greatest returns of any hedge fund sector in the first four
months, up 3.47%. |
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