New York (HedgeCo.net) – Performance losses reduced total hedge fund assets, but investor flows were net positive in January; a positive sign for the industry, according to an early estimate for January 2010 hedge fund asset flows and performance by Opalesque. Aggregate industry performance was significantly better than broad equity markets.
Highlights:
* Total hedge fund assets decreased -0.14% to an estimated $2.038 trillion, performance losses were the main cause of the reduction.
* Investors allocated $4.51 billion to hedge funds in January, performance reduced assets by $7.27 billion resulting in total assets falling $2.76 billion during the month.
* Investor flows were positive in January for the eighth month in the last nine. There was a slight outflow in December due to year-end redemption trends.
* The Core Growth Rate (% increase in assets due solely to investor flows) was +0.22% in January.
* Hedge fund assets are still $900 billion below the peak set in Q2 2008.
Hedge fund performance was negative in January, but the average of all funds outperformed equity markets significantly. Poor returns from commodity and equity focused funds more than offset positive returns from funds focusing on fixed income and FX markets.
The HFN Hedge Fund Aggregate Index was -0.81% in January 2010 after rising +19.43% in 2009. A full report will be available later in the month.
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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