THE BA RCL AY F U ND FLOW INDICATOR
July 2019 Hedge Funds Post Net Inflows in May as Positive U.S. Economic Signs Offset Growth Worries Elsewhere, Brexit Concerns
H
edge funds reversed the redemption trend in May with $800 million in industry inflows, a turnaround from April’s $9.4 billion in redemptions. May’s inflows represented a negligible percentage of hedge fund industry assets. With hedge funds experiencing $33.6 billion in trading losses during the month, total industry assets declined to nearly $3.07* trillion at the end of May. A solid March U.S. jobs report coupled with strong consumer spending and hopeful signs in the U.S.-China trade dispute that drove stock market gains in April also contributed to May’s hedge fund inflows. But the stock and bond markets stumbled in May as rhetoric turned hotter in the U.S.-China trade war, contributing to industry trading losses. Positive signs in the U.S. economy fueled nearly $10.6 billion in inflows to hedge funds in the U.S. and its offshore islands. Elsewhere, Brexit uncertainty continued to take a toll on funds in the U.K. and Europe. Funds in Continental Europe experienced more than $7.5 billion in redemptions in May, while those in the U.K. and its offshore islands saw more than $5.8 billion in outflows. Managed futures redemptions picked up in May to $3.8 billion, up from $400 million in April outflows as some investors opted for equity market gains over risk diversification.
HEDGE FUND AND CTA FLOWS ($BIL) — MAY 2019 Category
May 2019 Flow
May Trading P/L
May 2019 Flow %
Balanced (Stocks & Bonds) 2.0 -4.2 0.6% Convertible Arbitrage 0.2 0.0 1.2% Distressed Securities 0.1 -0.3 0.1% EM - Global -0.1 -1.2 -0.1% EM - Eastern Europe -0.1 -0.1 -0.9% EM - Asia -0.8 -4.2 -0.6% EM - Latin America 0.2 0.2 2.1% Equity Long Bias 0.9 -9.1 0.3% Equity Long-Only -1.1 -7.6 -0.8% Equity Long/Short -2.5 -0.3 -1.2% Equity Market Neutral -1.0 0.9 -1.2% Event Driven 4.6 -1.6 3.2% Fixed Income 0.9 1.4 0.1% Macro -1.5 0.4 -0.8% Merger Arbitrage -0.1 -0.3 -0.1% Multi-Strategy 1.8 -0.6 0.6% Options Strategies -1.2 0.1 -2.6% Other -1.2 -0.6 -2.0% Sector Specific -0.1 -6.1 -0.0% Hedge Fund Industry* 0.8 -33.6 0.0% Funds of Funds 0.7 -2.1 0.3% UCITS Funds -9.1 -14.0 -1.0% 40 Act Funds 6.1 -4.3 0.7% Managed Futures Industry -3.8 -4.6 -1.2% Discretionary CTAs 0.0 -0.1 0.1% Systematic CTAs -3.8 -4.6 -1.2% Hybrid CTAs -0.1 0.1 -1.1% Multi Advisor Futures Funds 0.3 -0.2 3.7%
YTD 2019 Flow
YTD Trading P/L
YTD 2019 Flow %
Last 12 Months Flow
Last 12 Months Trading P/L
Last 12 Months Flow %
Total Assets May 2019 $ U.S. Billion
-3.7 17.8 -1.5% -27.8 9.5 -11.3% 319.0 0.4 0.9 2.3% -0.2 1.0 -1.0% 19.6 -6.2 0.6 -9.0% -9.3 -0.6 -12.6% 55.0 -4.1 3.9 -3.4% -12.4 -2.8 -9.0% 121.4 -0.4 1.3 -2.9% -1.0 0.2 -6.1% 15.0 1.2 6.5 1.2% -1.2 -7.2 -1.1% 113.8 0.7 0.9 6.4% -2.1 0.6 -14.1% 11.6 -18.8 20.6 -5.8% -25.8 5.9 -8.0% 325.5 -7.9 11.0 -5.7% -8.7 -4.3 -5.3% 138.9 -18.6 3.8 -8.7% -31.1 -3.6 -13.9% 205.8 -3.7 -1.3 -4.1% -5.7 -2.8 -6.0% 88.4 7.9 6.5 5.7% 9.9 2.8 6.9% 159.3 -2.8 17.8 -0.5% -28.1 15.3 -4.9% 631.3 31.4 8.3 16.9% 15.6 -3.5 7.6% 195.8 0.8 0.9 1.3% 0.9 2.1 1.4% 69.4 2.4 7.9 0.8% -8.1 2.4 -2.6% 318.4 -5.2 0.1 -10.5% -7.2 -0.8 -14.3% 44.5 -2.5 1.6 -4.2% -4.8 -0.4 -7.9% 55.7 -1.9 14.8 -1.3% -3.6 1.1 -2.2% 170.4 -31.5 124.3 -1.1% -151.0 14.8 -5.0% 3069.8 -9.6 10.0 -3.6% -19.4 -0.9 -7.4% 252.3 -38.0 31.4 -4.8% -79.4 -9.6 -9.0% 849.9 -24.0 38.3 -3.0% -52.2 19.3 -6.8% 887.6 -10.0 2.4 -2.8% -17.7 5.6 -4.8% 320.7 0.2 0.6 0.4% 5.4 1.0 14.0% 11.2 -10.1 1.7 -3.3% -21.8 4.5 -6.9% 302.3 -0.1 0.2 -0.6% -1.2 0.1 -13.4% 7.2 0.0 0.0 0.2% -1.4 -0.3 -13.6% 8.5
*Assets under management (AUM) are calculated independently of flows and reflect new funds added to the database in May 2019. Hedge fund AUMs and flows as presented in this report do not include managed futures (CTA) AUMs and flows.
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