Santa Rosa, CA – December 6, 2007 – TrimTabs Investment Research and BarclayHedge reported today that all hedge funds posted an estimated inflow of $16.0 billion in October. The October inflow was the lowest since January.
“Although the October inflow was down a bit from prior months, it is stunning to note that year to date, hedge fund flows of $279 billion are more than three times equity mutual fund flows of $79 billion,” said Charles Biderman, chief executive officer, TrimTabs Investment Research.
“The hedge fund industry’s 3.5% return in October was the highest in the past seven years,” said Sol Waksman, chief executive officer of BarclayHedge Ltd., “Nevertheless, recent market turmoil has made investors a bit more cautious about investing in hedge funds.”
Breaking out the estimated $16.0 billion inflow into all hedge funds in October, funds of hedge funds received an estimated $18.8 billion, while direct investment into hedge funds was negative, totaling an estimated -$2.8 billion.
Since funds of hedge funds attracted plenty of cash and the hedge fund industry posted strong returns in October, inflows into all hedge funds probably increased in November.
The most popular hedge fund categories in October were Multi-Strategy and Equity Market Neutral, which posted estimated inflows of $3.8 billion and $3.7 billion, respectively. “Inflows into Multi-Strategy have been strong all year, but inflows of Equity Market Neutral have been much more volatile,” noted Biderman.
The least popular hedge fund category in October was Fixed Income, which lost an estimated $2.2 billion, its third consecutive outflow. It is not surprising that this category was unpopular since its year-to-date return of 2.8% is the lowest of any hedge fund category.
The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis, and the TrimTabs Hedge Fund Flow Report provides detailed analysis of these flows. For further information, please visit http://www.barclayhedge.com/products/trimtabs-hedge-fund-flow-report.html.
# # #
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 www.TrimTabs.com.
Stern & Company
Chief Executive Officer
TrimTabs Investment Research
Senior Vice President