Hedge fund investors renewed their interest in the sector in November after two months of outflows, allocating $5.4 billion to hedge funds, according to eVestment.
The inflows plus performance gains brought hedge fund assets under management to $3.1 trillion in November, eVestment reported.
Positive investor allocation trends, which had persisted for several months leading up to September and October’s volatility, resumed in November. Flows into long/short ($4.5 billion), event-driven ($2.1 billion) and multi-strategy ($4.8 billion) led the industry.
eVestment said the flows into equity exposure were important because they showed a level of continued support for the group in the face of recent volatility.
Although redemptions may still emerge in coming months as a result of the September/October disruption, it said, the net effect may be muted, thanks to the underlying trend in their favor.