The global hedge fund sector finished 3Q2010 on a high note as the Eurekahedge Hedge Fund Index delivered a strong 3.37% return for September.
A surge in risk appetite amid upbeat corporate earnings estimates and a stream of positive economic data led to rallies in the underlying markets. The MSCI World Index advanced 6.74% in the month.
Newly revealed data puts the revised net asset flow figure for August at $14.7 billion while net subscriptions for
September were even higher at $15.61 billion. This brings the total size of the industry at $1.59 trillion, a 23 month high. While asset flows have started to pick up as predicted by Eurekahedge analysts, performance-based gains accounted for a massive US$24.3 billion increase in industry assets in September.
Highlights from this month’s report include:
- Hedge funds attracted $30 billion over August and September based on newly revealed data, taking total assets to just shy of $1.6 trillion (surpassing November 2008 total AuM).
- UCITS III hedge funds continued to attract capital to the tune of $3 billion in September 2010.
- Hedge funds witnessed their best monthly returns in 16 months, up 3.29% in September 2010.
- All regions and strategies posted positive returns for September.
- Larger hedge funds (AuM > $500 million) outperformed smaller funds, up 6.04% YTD.
- The Eurekahedge Islamic Fund Equity Index registered a 12-month return of 3.4%, beating other broad stock market indices which were either negative or flat.
Editing by Alex Akesson