Magazine article American Banker

Investors, Markets Lift Assets 4% in 2Q Hedge Funds

Magazine article American Banker

Investors, Markets Lift Assets 4% in 2Q Hedge Funds

Article excerpt

Byline: Matt Ackermann

Assets held in hedge funds grew 4.41% during the second quarter, to $2.973 trillion, according to data released Monday.

HedgeFund.net reported in its survey of hedge administrators that investors allocated $34.21 billion to hedge funds in the quarter and performance gains added $91.28 billion of asset value.

The dollar amount of fund liquidations during the quarter was larger than that of fund launchings by an estimated $8.52 billion; this was the third-highest level of fund closures on record.

Despite liquidations, large funds appear to have attracted enough capital to expand the industry overall at an organic growth rate of 11.06% from a year earlier.

Funds of hedge funds had net withdrawals of investor assets in the quarter for only the second time on record. Fund of hedge funds liquidations exceeded fund introductions and allocations to existing funds by $470 million, HedgeFund.net reported.

Performance gains actually lifted total fund of hedge funds assets by 2.43%, to $1.439 trillion, from the previous quarter.

European hedge funds had the most organic growth. New allocations of $21.47 billion to such funds raised total assets by 2.62%. Combined with performance gains, European hedge fund assets rose 4.80%, to $857.65 billion.

Funds operating in Asia saw total assets fall an estimated $3.12 billion. Redemptions alone took away $1.14 billion of asset value from Asian hedge funds. …

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