The hedge fund industry posted a second consecutive month of inflows in November, adding $14.0 billion in new assets during the month. November’s inflows marked a significant increase over the $5.2 billion in new assets the industry added in October.
November’s inflows represented 0.4% of industry assets, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions.
Coupled with a $134.4 billion monthly trading profit, total industry assets stood at more than $3.60 trillion as November ended.
Data from 6,900 funds in the BarclayHedge database showed Sector Specific funds setting the pace in November bringing in $6.2 billion, while Fixed Income funds added $4.7 billion.
“Investors looked beyond the immediate pandemic concerns and found cause for optimism in improved consumer sentiment and retail sales, upticks in some commodity prices, the strong economic recovery in China and record economic growth in the U.S. during the third quarter,” said Sol Waksman, president of BarclayHedge.
For the 12 months through November, the hedge fund industry experienced $100.1 billion in redemptions. A $149.1 billion trading profit over the period brought total industry assets to $3.60 trillion at the end of November, up from $3.41 trillion at the end of October and up from $3.17 trillion a year earlier.
Five hedge fund sectors experienced 12-month inflows through November. Leading the way were Sector Specific funds adding $31.7 billion, 17.4% of assets, and Event Driven funds with 12-month inflows of $7.1 billion, 4.1% of assets. Emerging Markets – Asia funds added $5.3 billion, 4.6% of assets, Convertible Arbitrage funds took in $5.1 billion, 24.6% of assets, and Emerging Markets – Latin America funds brought in $567.8 million, 4.8% of assets.
Equity Long/Short Funds reported the largest 12-month redemptions with $27.3 billion in outflows, 13.6% of assets. Macro Funds shed $22.5 billion, 11.3% of assets, over the period, Fixed Income funds saw $19.8 billion in redemptions, 3.1% of assets, and Equity Long Bias funds experienced $18.4 billion in outflows, 5.3% of assets.
Managed futures funds returned to inflows in November, bringing in $73.4 million in new assets. Three of four CTA sectors experienced inflows. Hybrid CTAs added $153.4 million, 1.7% of assets, Multi Advisor Futures Funds brought in $142.6 million, 1.4% of assets, and Discretionary CTAs saw $27.5 million in inflows, 0.2% of assets.
The lone managed futures sector posting net redemptions in November was Systematic CTAs with $107.5 million in outflows, a negligible amount of assets.
For the 12-month period through November, CTAs saw $8.0 billion in outflows, 2.6% of assets. A $12.7 billion trading loss over the period brought industry assets to $291.7 billion industry asset total at the end of the month, down from $310.2 billion a year earlier.
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Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds and real estate investment firms.
BarclayHedge, a division of Backstop, currently maintains data on more than 7,100 hedge funds, funds of funds and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries.
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