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Hedge Funds Attracted $30 Billion Over August and September

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

About Alex Akesson

Alex has been specializing in hedge fund and alternative investment news since April 2006. Working mainly in research and manager interviews, she has published breaking news on the hedge fund industry on her blog, as well as several industry publications. Her access to hedge fund managers gives her insight into news stories as well, and the ability to track press releases and other breaking news in real time.
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One Response to Hedge Funds Attracted $30 Billion Over August and September

  1. Farhan says:

    September result was also the 2nd best monthly return since March 2003 – seems like hedge funds are back. Emerging markets are also doing very well, China and India focused hedge funds were up nearly 7% in September.

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