TASS Research has reported that hedge funds have recorded an inflow of $8.4bn in net assets in the s...
TASS Research has reported that hedge funds have recorded an inflow of $8.4bn in net assets in the second quarter of 2001, which was more new assets than were added in all of 2000, writes Joanne Frearson.
It was also the largest single quarterly net inflow since TASS Research began tracing fund flow information in 1994.
Both the event driven and long/short equity categories were the largest recipients of assets in the second quarter of the year with each registering gains of $2.5bn. Convertible arbitrage followed closely behind bringing in $2.4bn in net assets.
Event-driven funds experienced their largest quarterly inflows since the first quarter of 1998. Much of the new money was directed at the distressed investing sub-strategy as reduced deal flow and tighter spreads have made risk arbitrage significantly less appealing.
Long/short equity funds were rewarded with 29% of the quarter's new assets as investors sought refuge in managers capable of shifting exposures and producing alpha on both the long and short sides of the market.
Convertible arbitrage funds took twice the level of assets during the second quarter compared to the previous quarter coinciding with record new issuance in the US. However, TASS Research has explained asset flows to this category may slow since issuance may naturally drop.
TASS Research provides data and research on the performance of more than 2,500 alternative investment managers and funds. Tremont has more than $7bn under management through its subsidiaries.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation