Hedge Funds Gain $117 Billion In 2014

Screenshot 2014-12-16 12.21.51New York (HedgeCo.Net) – Hedge funds are up 4.62% year-to-date, and based on preliminary returns reported by funds with daily liquidity, Eurekahedge expects the index to be broadly flat in December and finish in the 4% to 5% range for 2014.

The 2014 Eurekahedge Report also announced that the total AUM of the industry grew by $117 billion in 2014 – well below the levels seen in 2013 when industry assets grew by $240 billion. Net asset inflows for the year stand at $40.8 billion, one-third of the inflows recorded in 2013. Inflows for 1H 2014 stood at $75.8 billion while 2H 2014 has seen net outflows of $35 billion.

Other highlights include:

  • Asia ex-Japan investing funds have delivered the best returns globally and are up 8.54% for the year, outperforming the MSCI Asia ex Japan by over 400 basis points.
  • CTA/managed futures funds have reported performance-based gains of $18.7 billion for the year which is their highest November year-to-date gain since 2008, with North American CTAs leading with year-to-date returns of 9.22%.
  • India investing hedge funds reported their tenth consecutive month of positive returns with managers deploying long/short equities strategy up 54.44% year-to-date – outperforming the BSE Sensex by almost 20%.
  • European managers continue to face headwinds, generating only 1.21% of returns for the year. They have reported strong investor withdrawals of $14.8 billion in the second half of 2014, their highest 2H withdrawals since 2011 when investors redeemed $38.3 billion.

The benchmark Eurekahedge Hedge Fund Index was up 1.46% in November, while the MSCI World Index gained 2.34% over the month. Total assets under management increased by $12.3 billion during the month as the sector witnessed performance-based gains of $19.64 billion while registering net asset outflows of $7.4 billion. The total size of the industry now stands at $2.13 trillion.

Alex Akesson
Editor for HedgeCo.net
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