Investors pile into hedge funds, pushing total assets close to $3 trillion

Investors pile into hedge funds, pushing total assets close to $3 trillion
Equity hedge category leads investor inflows as performance improves.
APR 22, 2015
Macroeconomic uncertainty is being credited with boosting the appeal of hedge fund strategies during the first quarter, which capped off the best three months for inflows since the second quarter of last year. Global hedge fund assets grew by $95 billion during the quarter to a record $2.94 trillion, according a report Monday from Hedge Fund Research Inc. (More: The case for incorporating private equity in client portfolios)

Source: Hedge Fund Research, Inc.

Note: as of 1Q 2015

Of the $95 billion increase, $18.2 billion was inflows, including $9.6 billion into equity hedge strategies, which averaged a 2.1% gain during the quarter. The quarter's best-performing categories were systematic diversified at 4.81%, and technology/health care at 4.47%. The HFRI Fund Weighted Composite Index gained 2.29% during the quarter, compared with a 0.95% gain in the S&P 500 Index and a 1.95% gain in the Barclays Capital Government Credit Bond Index. (More: The long/short case for investors) Of the more than two dozen hedge fund subcategories tracked by HFR, only short-biased finished the quarter in negative territory, down 1.4% from the start of the year.

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