FOR IMMEDIATE RELEASE
Hedge Funds Post Inflow of $7.6 Billion in March;
Hedge Fund Assets Stand at 16-Month High of $1.64 Trillion
New York, NY – May 10, 2010 – TrimTabs Investment Research and BarclayHedge reported that the hedge fund industry posted an estimated inflow of $7.6 billion, or 0.5% of assets, in March 2010. Hedge fund assets stand at a 16-month high of $1.64 trillion.
“The Barclay Hedge Fund index is up 29.9% in the past 13 months,” said Sol Waksman, CEO of BarclayHedge. “Hedge funds returned an average 2.9% in March, the best performance since September 2009.”
Multi Strategy funds posted the largest outflow (1.3% of assets) in March, while Event Driven funds posted the biggest inflow (1.5% of assets). Event Driven funds show a year-to-date return of 4.7%, one of the largest of all fund strategies.
“We’ve seen a stark shift to the riskiest strategies from the most conservative ones,” said Vincent Deluard, Global Equity Strategist at TrimTabs. “Aggressive bets have paid handsomely and flows are following performance.”
In the May Hedge Fund Flow Report, TrimTabs found that a strong historical relationship between hedge fund flows and returns weakened dramatically since the credit crisis in 2008. The firm believes stricter leverage requirements and proposed industry regulation are depressing inflows. TrimTabs analysis also shows that the volatility of hedge fund returns fell sharply in the past year.
“We fear that systemic risk is greater than most market participants realize,” Deluard noted. “As recent market action highlights, small shifts can quickly lead to disproportionate losses when everybody’s betting the same way.”
The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Hedge Fund Flow Report provides detailed analysis of these flows as well as relevant topical studies. Click here for further information.
BarclayHedge is a leading hedge fund data vendor and one of the foremost sources for proprietary research in the field of alternative investments. From its origin as a research specialist and performance measurement firm, BarclayHedge has developed complete client services as a publisher, database and software provider, and industry consultant.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit us here.