The average hedge fund returned 3.14 percent in the first half of 2017. Almost 75 percent of managers showed positive returns and another 18 percent outperformed such equity benchmarks as the MSCI AC World Index, data provider Eurekahedge reported.
This is a significant improvement over the same period last year, when only just over half of the managers did not lose money. However, two-thirds of managers outperformed the MSCI World Index at the time.
The fund industry reversed redemptions of US$70 billion in the second half of 2016 with net inflows of US$55 billion in the first six months of this year.
Of these, smaller funds, which manage between $100 million and $500 million in assets, raised almost $20 billion. The largest funds, with assets under management of more than $1 billion accounted for $32 billion of new investments.
Most of the funds flowed into North American ($40 billion) and European hedge funds ($12 billion).
Long-short equity fund managers grew their assets under management by $23.5 billion in the first half of 2017 on the back of strong performance-based gains, Eurekahedge reported.
Long-short equity hedge fund managers are up 5.24 percent for the year, with equity-long bias funds gaining 8.11 percent for the year.
Asian hedge funds have recorded an $8.1 billion asset growth in AUM, with $5.8 billion coming from performance-based gains and $2.3 billion from new net investor allocations.
Funds focusing on Asia, excluding Japan, are up 9.24 percent in 2017 as managers focusing on Greater China and India were up 12.61 percent and 14.99 percent, respectively. Funds investing in Japan, in turn, returned only 4.68 percent over the same period.
Meanwhile, European funds increased their asset base by $18.3 billion this year after steep net outflows of $29.3 billion in the second half of 2016.
Funds investing in Europe are up 4.14 percent for the year following a flat gain of 0.19 percent in 2016.
News source: Cayman Compass