Hedge funds inflows dip below 1Q

Hedge funds pulled in $58.7 billion in new flows during the second quarter, according to Hedge Fund Research.
JUL 23, 2007
By  Bloomberg
Hedge funds pulled in $58.7 billion in new flows during the second quarter, according to Hedge Fund Research Inc. of Chicago. New asset levels came in just below the first quarter’s record levels of $60 billion. The one laggard in the hedge fund group was the merger arbitrage strategy, which lost $125 million in assets, compared to a gain of $408 million in the prior quarter. The most popular strategies were retail value arbitrage, which collected $16.4 billion in new assets; equity hedge, which brought in $12.6 billion; and event-driven, which had inflows of $9.48 billion. In terms of performance, the average hedge fund reached gains of 4.77%, but emerging markets funds led the way, up 8.85% during the period and 14.75% year-to-date. Even though subprime mortgage credit has had an impact on the second quarter, relative value arbitrage strategies, which contain multi-strategy credit funds, still saw quarterly gains of 3.2% and 6.53% year to date, according to the study. “Subprime mortgage exposure has not yet resulted in a generalized, systemic impact on indexes of credit-focused hedge funds or on the broader hedge fund universe,” said Kenneth Heinz, president of HFR, in a statement. ”Specific instances of weakness are at least partially offset by the performance of funds which have minimized their exposure to subprime mortgage credit or maintained short exposure to many of these securities.”

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave