Inflows hit hedge funds at end of 2014 as volatility rises

Related Content Related Video Related Articles

Financial market volatility encourages net inflows to hedge funds in the last quarter of 2014, according to research published by HFR.

The Chicago headquartered researcher cited factors such as falling oil prices, euro weakness, and falls in both the rouble and equity markets.

Some $3.6bn in new capital was allocated to hedge funds globally through the quarter, taking full year 2014 inflows to $76.4bn, HFR said.

Other data contained in its Global Hedge Fund Industry Report point to total assets in hedge funds reaching $2.85trn, while the broader HFRI Fund Weighted Composite index gained 3.3% over the full year.

“Many of the powerful year end macro trends have accelerated into early 2015, punctuated by the dramatic fall in the euro following the Swiss National Bank’s surprise abandonment of the Swiss franc/euro exchange rate cap in mid-January,” HFR said.

“Investors benefitted from conservative and opportunistic hedge fund positioning into year-end, with Macro and quantitative CTA hedge funds posting gains driven by strong trends in short oil and euro exposures.”

In terms of particular strategies, HFR said its HFRI Macro (Total) index was the leading one over the year, adding 6.2%. However, it also noted that “despite recent performance gains, investors continued to redeem from macro strategies, with outflows concentrated in multi-strategy, discretionary and commodity focused funds. Macro experienced net outflows of $7.2bn in Q4.”

By contrast, relative value arbitrage strategies experienced inflows of $45.5bn, and equity hedge strategies saw net inflows of $26.8bn.

HFR has published the full report available for purchase:


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

Read more from Jonathan Boyd

Close Window
View the Magazine

You need to fill all required fields!