{"id":44679,"date":"2014-10-22T06:53:07","date_gmt":"2014-10-22T10:53:07","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=44679"},"modified":"2014-10-22T08:07:04","modified_gmt":"2014-10-22T12:07:04","slug":"q3-investors-allocate-11-4-billion-to-event-driven-strategies","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2014\/q3-investors-allocate-11-4-billion-to-event-driven-strategies.html","title":{"rendered":"Q3: Investors Allocate $11.4 Billion To Event-Driven Strategies"},"content":{"rendered":"

\"market-research-2-e1298523434297\"<\/a>New York (HedgeCo.Net) – Total hedge fund capital increased to a record level in the third\u00a0quarter as financial market volatility increased into quarter-end, with inflows concentrated in\u00a0Event Driven and Fixed Income-based Relative Value Arbitrage strategies, according to the\u00a0latest HFR Global Hedge Fund Industry Report.<\/p>\n

Hedge fund\u00a0industry capital finished the quarter at $2.82 trillion, an increase of $18 billion, or 0.6 percent,\u00a0over the prior quarter; through the first three quarters of 2014, hedge fund industry assets have\u00a0increased by $190 billion, or seven percent.<\/p>\n

The 3Q increase marks the 9th consecutive quarterly\u00a0record level of total hedge fund industry capital. The increase in capital was primarily from new allocations as investors added $15.9\u00a0billion in new capital to hedge funds in 3Q, a decline from the $30.5 billion in inflows from\u00a02Q14. Inflows YTD totaled $72.7 billion, the highest inflow for the first three quarters of a\u00a0calendar year since 2007.<\/p>\n

Hedge fund performance was essentially flat for the quarter, with the\u00a0HFRI Fund Weighted Composite Index\u00ae\u00a0posting a decline of -0.09 percent (9 basis points); the\u00a0index gained +3.07 percent through the first three quarters of 2014. Third quarter inflows were concentrated in fixed income and credit-based strategies,\u00a0including Relative Value Arbitrage (RVA) and Event-Driven (ED) strategies. Investors allocated HFR\u00a0$11.1 billion to fixed income-based RVA, bringing YTD capital inflows in RVA to $40.6 billion\u00a0and total RVA capital to $756 billion. Within RVA sub-strategies, investors allocated $6.1\u00a0billion in new capital to Fixed Income Multi-Strategy funds, bringing YTD inflows for RVA:\u00a0Multi-Strat to $25.5 billion and increasing total capital in this sub-strategy to nearly $450 billion,\u00a0making it the largest single sub-strategy area of the total industry.<\/p>\n

Similarly, investors allocated\u00a0$11.4 billion in new capital to Event-Driven (ED) strategies, bringing YTD inflows to $27.1\u00a0billion and total ED capital to $756 billion. ED inflows were concentrated in Special Situations\u00a0sub-strategies, with these receiving $5.8 billion in new capital.<\/p>\n

The HFRI Relative Value Index\u00a0posted a narrow gain of +0.13 percent to 3Q14, leading all strategies YTD with a gain of +4.94\u00a0percent through quarter-end. The HFRI Event Driven Index posted a decline of -1.48 percent for\u00a03Q14, paring the YTD gain for ED to +2.81 percent. Equity Hedge (EH) strategies received new inflows of $4.55 billion in 3Q, bringing YTD\u00a0inflows to $25.8 billion and total EH capital to $778.4 billion, the largest strategy area by assets.\u00a0EH inflows were concentrated in Fundamental Value strategies, with these receiving $2.7 billion\u00a0for 3Q and $10.9 billion YTD.<\/p>\n

The HFRI Equity Hedge Index declined -1.3 percent in 3Q, also\u00a0paring the YTD gain to +1.92 percent. Despite an important performance reversal in Macro and CTA strategies, investors continued to withdraw capital from Macro in 3Q, with redemptions totaling $11.1 billion in 3Q\u00a0and $20.7 billion YTD. Macro redemptions were concentrated in quantitative Systematic Diversified CTA strategies, with redemptions from these totaling $5.7 billion for 3Q and $11.5\u00a0billion YTD.<\/p>\n

The HFRI Macro Index posted a gain of +2.7 percent for 3Q and +3.8 percent\u00a0YTD, while the HFRI Macro: Systematic Diversified\/CTA Index gained +4.62 percent in 3Q and\u00a0+4.81 percent YTD. Performance-based asset gains in 3Q offset outflows in Macro to increase\u00a0total strategy capital by $7 billion to $528 billion. Investors redeemed $2.1 billion from Fund of Hedge Funds (FOF) in 3Q, offsetting a\u00a0small inflow in the prior quarter, bringing YTD FOF outflows to $1.96 billion and total FOF\u00a0capital to $672 billion.<\/p>\n

For the first time since 2009, inflows to both small and mid-sized firms exceeded the\u00a0inflows to the largest firms in the hedge fund industry. Firms managing less than $1 billion\u00a0received $5.1 billion in capital inflows, while mid-sized firms, managing between $1 and $5 HFR \u00a0billion, received $6.6 billion in inflows. The industry\u2019s largest firms, managing greater than $5\u00a0billion, received inflows of $4.2 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – Total hedge fund capital increased to a record level in the third\u00a0quarter as financial market volatility increased into quarter-end, with inflows concentrated in\u00a0Event Driven and Fixed Income-based Relative Value Arbitrage strategies, according to the\u00a0latest HFR Global […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16044,3],"tags":[],"class_list":["post-44679","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-strategies-2","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=44679"}],"version-history":[{"count":5,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44679\/revisions"}],"predecessor-version":[{"id":44686,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/44679\/revisions\/44686"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=44679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=44679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=44679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}