Introduction
Hedge funds started 2012 on a strong note, as the composite Eurekahedge Hedge Fund Index rose 2.1%1 on the month. Rallying equity markets, on the back of a sharp increase in risk appetite, coupled with marked reversals across some other asset classes – such as commodities and currencies – were among the factors responsible for the month’s gains. Additionally, better than expected economic data coupled with easy monetary conditions (in the form of bond purchases) further improved investor sentiment during January. Total hedge fund assets under management climbed back above the US$1.72 trillion mark, through US$11.35 billion of performance based growth and US$3.66 billion of net asset inflows
Highlights of hedge fund performance and asset flows for the month are as follows:
January 2012 | US$ billion |
---|---|
Allocation (Inflows) | 21.65 |
Redemption (Outflows) | -17.99 |
Net Asset Flows | 3.66 |
Positive Performance (Growth) | 14.79 |
Negative Performance (Decline) | -3.44 |
Total | 11.35 |
Overall Total | 15.02 |
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Footnote
1 Based on 70.58% of funds which have reported January 2012 returns as at 20 February 2012.
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