“Hedge funds took in $56.4 billion in the first four months of 2014, more than triple the inflow of $16.9 billion in the same period last year,” said Sol Waksman, president and founder of BarclayHedge.
Industry assets climbed to a 5-1/2 year high of $2.2 trillion in April, according to estimates based on data from 3,369 funds. Assets rose 18% in the past 12 months but were down 9% from the all-time high of $2.4 trillion in June 2008.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry earned just 0.01% in April and underperformed the S&P 500, which gained 0.7%. In the past 12 months, the industry returned 7.7%, while the S&P 500 gained 17.9%.
“Funds targeting distressed securities have been standout performers this year,” said Waksman. “These funds rose 1.1% in April and 5.2% in the first four months of this year, outperforming all other hedge fund strategies.”
The monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds 42% of the hedge fund managers queried were neutral on the S&P 500 over the next 30 days, and the rest were evenly divided between bullish and bearish. Most managers expected emerging and frontier markets to underperform over the next six months, but the majority favoring developed markets dipped to a 15-month low.
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.