“Hedge fund inflows this year are the strongest we’ve seen since the financial crisis,” said Sol Waksman, president and founder of BarclayHedge. “The industry took in $99.0 billion in the first eight months of 2014, more than double the inflow of $47.5 billion in the same period last year.”
Industry assets rose to a six-year high of $2.38 trillion in August, according to estimates based on data from 3,485 funds. Assets climbed 19.5% in the past 12 months and are down just 2.6% from the all-time high of $2.44 trillion in June 2008.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the Barclay Hedge Fund Index gained 1.2% in August, underperforming the S&P 500, which gained 3.8% for the month. In the past 12 months, the Barclay Hedge Fund Index returned 10.3%, while the S&P 500 gained 25.2%.
“Sector Specific funds delivered the best returns in August, gaining 2.6%, while Multi-Strategy funds had the strongest inflows at $4.4 billion,” said Waksman. He also noted that investors are shunning Macro funds, which have had the most redemptions year to date ($4.3 billion) and in the past 12 months ($9.8 billion).
The monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds no consensus on U.S. stocks: 37.4% of respondents in September’s survey were neutral on the S&P 500 over the next 30 days, 32.3% were bullish, and 30.3% were bearish. Optimism on the U.S. Dollar Index rose to an all-time high, while pessimism on 10-year Treasury notes more than doubled. Managers also turned more bearish on gold and oil prices.
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.