New York (HedgeCo.net) – Investor interest in hedge funds came back in November, with industry AUM increasing to $3.070 billion last month, according to eVestment\u2019s just-released November 2014 Hedge Fund Asset Flows report.<\/p>\n
Some highlights\u00a0from this month\u2019s report include:<\/p>\n
1) After two-months of outflows, investors added $5.4 billion to a variety of fund types this past month. With performance gains added in, hedge fund industry AUM increased to $3.070 trillion in November.<\/p>\n
2) Despite recent returns\u00a0putting managed futures strategies among the industry\u2019s best performers in 2014, investors have been slow to shift allocation decisions in managed futures strategies\u2019 favor. Both macro and managed futures funds faced redemptions in November of $4.10 billion and $4.11 billion respectively.<\/p>\n
3) Positive investor allocation trends, which had persisted for several months leading up to September and October\u2019s volatility, resumed in November. Namely, flows into equity, including both long\/short (up $4.54 billion) and event driven (up $2.11 billion) and multi-strategy (up $4.79 billion) led the industry.<\/p>\n
4) The flows into equity exposure were important because they show a level of continued support for the group in the face of recent volatility. While redemptions may still emerge in the coming months, with the underlying trend in their favor, the net effect may be muted.<\/p>\n
5) Credit strategies are going through a difficult period. Flows are mixed, with investor preferences leaning to directional strategies in the face of persistent\/declining rates.<\/p>\n
6) Interest in exposure to Asia was elevated, with Asia-focused strategies seeing inflows of $1.66 billion in November.<\/p>\n
7) Commodity fund flows were slightly positive in November, adding $720 million. This is meaningful given the big price moves in energy and metals over the last three months and will be an interesting area to watch.<\/p>\n