Hedge Fund Assets Nearing All-Time Pre-Recession Highs

October 7, 2014 by Chris Lange

170428950 (1)BarclayHedge and TrimTabs Investment Research announced Tuesday in a report that the hedge fund industry took in $18.4 billion in August. This marks the highest inflow in three months and signaled a strong rebound from redemptions of $750 million in July.

Meanwhile, hedge funds underperformed against the S&P 500 while they kept growing assets. The monthly Hedge Fund Flow Report from TrimTabs and BarclayHedge noted that the Barclay Hedge Fund Index gained 1.2% in August. This underperformed the S&P 500 which gained a 3.8% for the month. Over the past 12 months the Barclay Hedge Fund Index returned 10.3% compared to the S&P 500 which gained 25.2%.

The industry assets rose to a six-year high of $2.38 trillion in August, according to estimates. Assets increased 19.5% in the past 12 months but are only 2.6% lower than the all-time high of $2.44 trillion in June 2008.

BarclayHedge’s report said,

“Hedge fund inflows this year are the strongest we’ve seen since the financial crisis. The industry took in $99.0 billion in the first eight months of 2014, more than double the inflow of $47.5 billion in the same period last year… Sector Specific funds delivered the best returns in August, gaining 2.6%, while Multi-Strategy funds had the strongest inflows at $4.4 billion.”

BarclayHedge further noted that investors are shunning Macro funds, which have had the most redemptions year to date.

The monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers found no consensus on U.S. stocks. In September’s survey, 37.4% of respondents were neutral on the S&P 500 over the next 30 days, 32.3% were bullish and the remaining 30.3% were bearish. Optimism on the U.S. Dollar Index rose to all-time highs, while pessimism on the 10-year Treasury notes had more than doubled. Hedge fund managers became more bearish on gold and oil prices.

Sponsored: Want to Retire Early? Here’s a Great First Step

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.