Asset Flows Update for the Month of July 2012

August 2012 Hedge funds ended their longest losing streak since 2008 with positive returns of 1.10% 1 in July as managers captured gains from trends across various asset classes. July saw the first month of positive returns since February and the Eurekahedge Hedge Fund Index remained in positive territory for the year – up 2.57% July year-to-date (YTD). In comparison the MSCI World Index was up 1.05% 2 in July and 5.47% for the year. Assets under management (AUM) increased by US$10.6 billion during the month, bringing the size of the industry to US$1.74 trillion. Hedge funds posted performance-based gains of US$14.8 billion with managers across all strategies posting profits for the month. The increase in assets through performance was partially offset by net negative asset flows of US$4.2 billion – making it the third consecutive month of net outflows from the industry. Figure 1: Summary monthly asset flow data since January 2010
1800 40

Total assets in US$ billion





1400 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Net asset flows Feb-12 Jul-12 Performance-based growth Source: Eurekahedge

(40) Total assets

Key highlights for July 2012: • • Hedge funds were back in the black with positive performance in July, following four months of negative returns. The Eurekahedge Hedge Fund Index was up 1.10% in July and 2.57% YTD, but the industry saw net outflows of US$4.2 billion. Systematic trading managers gained 3% in July.

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Based on 47.06% of funds which have reported July 2012 returns as at 13 August 2012 The MSCI AC World Index All Core – Local Currency

Asset flow in US$ billion
August 2012 | 1

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