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TrimTabs and BarclayHedge Report Hedge Funds Get $250 Million in October and Underperform S&P 500. Inflows Slow Dramatically in Second Half of 2014

“Hedge fund inflows have slowed dramatically in the second half of this year,” said Sol Waksman, president and founder of BarclayHedge. “Inflows since July have averaged $2.9 billion monthly, down from $13.8 billion monthly in the first half of 2014.”

Industry assets stood at $2.37 trillion in October, down slightly from September’s six-year high of $2.38 trillion, according to estimates based on data from 3,500 funds. Assets climbed 15.8% in the past 12 months and are just 2.9% below the all-time high of $2.44 trillion in June 2008.

The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry lost 0.3% in October, improving on September’s loss of 1.3% but underperforming the S&P 500, which gained 2.4%.

“Equity Long Bias funds performed best in October, gaining 0.4%, while Emerging Markets funds had the strongest inflows at $2.6 billion,” said Waksman.

The monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds that hedge fund managers’ optimism on U.S. stocks hit the highest level this year in November, while bearish sentiment fell to a seven-month low. Bearish sentiment on the U.S. Dollar Index dropped to the lowest level since January 2011. Sentiment on 10-year U.S. Treasuries remained mostly neutral.

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.