Asset flows: Investors dump commodities funds

By Amal Robleh

Wed Mar 5, 2014

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Event-driven funds continue to gather cash.


Hedge funds had a positive start to the new year, with more than half of the strategies tracked experiencing positive inflows. 

Event-driven funds continued to thrive, with net inflows of 3.51%. This combined with an asset-weighted performance gain of 0.38% resulted in total assets rising by 3.89%.

Following a year in which the strategy rose 13.97%, global equity funds continued to be in demand with net inflows of 3.46%. The strategy was actually the biggest winner of the month, as inflows combined with asset-weighted performance gains resulted in total assets climbing 6.30%. 

Commodities funds were unable to leave the woes of 2013 in the rear view mirror, as investors continued to exit the strategy. Minimal performance losses of 0.14% offered no consolation as net outflows of 9.08% led to total assets for the strategy dropping a shocking 9.22%.

A full chart of fund flows is provided below. Monthly asset flow analyses are based on self-reported monthly asset and performance figures from Americas-based hedge funds listing in the HedgeFund Intelligence database. Funds reporting their monthly assets in both the current month (February) and previous month (January) managed a total of $433 billion.

Change in assets (January 2014)

Strategy

Fund Flows

Performance

Total

Commodities

-9.08%

-0.14%

-9.22%

Convertible & Equity Arbitrage

-1.55%

2.37%

0.82%

Credit

-0.54%

1.31%

0.77%

Distressed

-0.35%

2.35%

2.00%

Event Driven

3.51%

0.38%

3.89%

Fixed Income

0.43%

1.43%

1.86%

Global Equity

3.46%

2.83%

6.30%

Latin American Equity

0.31%

-6.23%

-5.93%

Macro

-0.68%

-0.01%

-0.69%

Managed Futures 2.65%

-1.54%

1.11%

Mixed Arbitrage

0.31%

1.23%

1.54%

Mortgage Backed Securities

-2.35%

1.74%

-0.61%
Multistrategy 2.80% 1.33%

4.14%

U.S. Equity

1.66%

-2.10%

-0.44%

Other*

-0.80%

-1.31%

-2.11%

Total

0.77%

0.39%

1.16%

*The category 'Other" refers to those funds managing strategies are not well represented enough in the database, such as Emerging Market Debt, Emerging Market Equity and Volatility, to justify discrete categorization.

Note: Strategy performance in this table is based on asset-weighted returns for funds reporting monthly assets and will therefore differ from the strategy performance of the Absolute Return Indices, which present the median return for all hedge funds within each strategy that report performance (and not necessarily assets) to the database. 

ISSN: 2151-1845 / CDC10004H