Hedge Funds Get a Boost

As pension funds pull back, hedge funds see gains.

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jump trampolineHedge funds were up 3.82% year-to-date, registering performance-based gains of US$56.4 billion while witnessing net asset inflows of US$60.7 billion in 2014, according to the Eureka Hedge Fund Report.

Currently, assets under management of funds of hedge funds have recovered to US$529.3 billion, an increase of US$5.7 billion from December 2013.

Here are some additional findings:

• India investing hedge funds continued to record strong gains, reporting its eighth consecutive month of positive returns—up 2.44% and 30.65% year-to-date.

• Latin American managers suffered losses of 2.03% during the month, though outperforming the MSCI Latin America Index, which fell 7.74%. The AUM of Latin America focused funds fell 4.50% in September.

• Long/short equities, event-driven and macro funds reported the largest outflows during the month, with investors redeeming US$3.3 billion, US$2.3 billion and US$2.0 billion, respectively from the aforementioned strategies.

• Asia ex-Japan focused funds were the only regional mandate reporting net asset inflows during the month. They have returned 6.66% as of September 2014 year-to-date and are on track to outperform their global peers.

• CTA/managed futures hedge funds delivered the best returns among all strategies in September, up 2.47% and 6.54% year-to-date, though investors have redeemed US$11.5 billion from the strategy in 2014 alone.

This story originally appeared on our sister site, Advisor.ca.

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