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Tuesday, April 12, 2011

Barclay Inflow data shows record investment in equity hedge funds

Monthly Hedge Fund Asset Flow Data by Strategy

We estimate the hedge fund industry hauled in $34.9 billion (2.0% of assets) in February, the heaviest inflow on record. February’s huge inflow alongside steady performance - the Barclay Hedge Fund Index increased 1.1% in February, the sixth straight gain - lifted hedge fund assets to $1.7 trillion, the highest level since October 2008.

Funds of hedge funds took in $7.3 billion (1.3% of assets) in February, their heaviest inflow since March 2008, after redeeming $2.9 billion in January. Clearly, investors are not rewarding performance. The Barclay Funds of Funds Index increased only 6.4% in the past 12 months; it underperformed most asset classes. Commodity trading advisors (CTAs) are faring much better. CTAs raked in $7.5 billion (2.5% of assets) in February, the heaviest inflow since June 2009, and the Barclay CTA Index increased 7.4% in the past 12 months.

Source: http://www.barclayhedge.com/research/asset-flows.html