HFR Finds Improved Performance and Asset Flow in Q3

NEW YORK (HedgeWorld.com)–Net inflow to hedge funds was almost US$17 billion in the third quarter, bringing industry total assets up to US$890 billion, according to Hedge Fund Research Inc. in Chicago. The figure compares favorably with the US$7.5 billion inflow HFR reported for the second quarter of this year.

Moreover, the HFR database indicated improved, if still lackluster, overall performance over the earlier quarter–a 0.9% gain compared with a 1% loss. Year to date, hedge funds in the database returned 3.57% and attracted US$46.6 billion in inflows.

Multi-strategy fund sectors experienced strong growth, with event-driven assets rising to US$117 billion and relative value arbitrage assets to more than US$110 billion.

In terms of returns, energy funds were at the top, with 8.8% for the quarter and 21.4% year to date. Total assets in this segment exceeded US$4 billion.

Distressed securities managers, with assets at US$42 billion, were strong performers, with a year-to-date return of 10.3%. Emerging markets funds notched significant upside in the third quarter after a loss in the previous quarter and are up 9.65% for the year.