The hedge fund industry has burst through the $1 trillion barrier, with equity hedge (long/short) fu...
The hedge fund industry has burst through the $1 trillion barrier, with equity hedge (long/short) funds proving the most popular strategy, according to recent research.
The level of growth is evidence of their continued popularity among investors wishing to diversify portfolios, according to Joshua Rosenberg, president of HFR Asset Management, who carried out the research.
Broken down by strategy, equity hedge has the largest allocation, with $291.5bn, while event driven has $135.8bn and relative value arbitrage third on $127bn.
Q1 2005 saw inflows of $208m to short selling strategies, which only attracted $58m in Q4 2004. Macro funds brought in four times more capital in Q1 2005, with $3.25bn, than it did in Q4 2004, while energy also proved increasingly attractive to investors, with $1.1bn this quarter double the figure for last.
Merger arbitrage performance also represented a turn-around from last quarter, reversing outflows of $203m and $342m respectively for the past two quarters to attract $302m investment. Technology funds continued to repel investors. After losing $1.43bn in 2004 it lost a further $953m this quarter. Fund of hedge funds saw $9.4bn inflows in the first quarter of 2005, bringing total assets to $371bn. Energy funds were the quarter's strongest performers, posting 6.27% returns. Equity long/short returned 6.15%, while emerging markets funds delivered 3.64%. Convertible arbitrage performed worst, returning 2.8%.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation