Hedge funds sector grows in H1 on back of solid performance


Hedge funds on average returned 3.14 percent for the first half of the year. Almost 75 percent of fund managers are in positive territory year-to-date while another 18 percent have outperformed the MSCI AC World Index (Local), according to data provider Eurekahedge in its latest report.

This is an improvement on the first half of 2016 when only 56 percent of managers did not lose money though 65 percent of managers had outperformed the MSCI AC World Index (Local).

The report also noted trends in the growth of funds. Smaller funds managing assets in the range of $100 million to $500 million have raised almost $20 billion this year, while the billion dollar club has accounted for $32 billion in inflows as investors' appetite for hedge funds continues to improve.

Following redemptions of $70 billion in 2H 2016, net inflows for the first half of 2017 came in at $55 billion. North American and European mandates accounted for $40 billion and $12 billion of net investor flows respectively, while emerging market mandates pulled in $4.1 billion.

As of June 2017 year-to-date, Asian hedge funds have recorded a growth in AUM of $8.1 billion, with $5.8 billion accounted for by performance-based gains while the remainder, roughly $2.3 billion has come through net investor allocations.

The $524.2 billion European hedge fund industry grew its AUM by $18.3 billion as of June 2017 year-to-date, following a steep contraction in AUM of $29.3 billion in 2016. Managers investing with a dedicated European mandate are up 4.14 percent for the year following a flat gain of 0.19 percent in 2016.

Hedge funds, First half 2017 results, H1, MSCI AC World Index, Eurekahedge, North America, Europe

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