Hedge fund have been very successful in past to attract high worth investors. In a recent report by hedge fund research (www.hedgefundresearch.com), the total AUM (Assets Under Management) grew more than $2.4 trillion and held by more than 10,000 funds worldwide.
In the last quarter the inflow of money to Hedge funds was more than $55 billion. This is remarkable record for the industry. Recent inflow indicates a change in hedge fund strategies specially for the event driven strategies. With sharper rise in bond yields, investors preferences have been changed for credit and interest rate sensitive events.
HFRI Equity hedge index gained by 5.3 percent in the first half and looks for brighter future. Technology, healthcare and fundamental value funds gained 8.9, 8.9, and 8.6 percent respectively.
The cash-flow happened for almost all funds more than $500 million under management. In addition to cash-flow, the number of funds has also been increased. “Hedge fund managers and investors continue to position for a post-QE environment dominated by fundamental, mean-reverting and trend-following factors, with these in contrast to the macro policy and stimulus-dominated environment of recent quarters,” said Kenneth Heinz, president of HFR.
Top performing hedge funds to date
- Metacapital Mortgage Opportunities: Metacapital Management | USA | $1B | YTD Returns: 37.8 % | Mortgage-backed arbitrage
- Pine River Fixed Income: Pine River Capital Management | USA | $3.6B | YTD Returns: 32.9 % | Mortgage-backed arbitrage
- CQS Directional Opportunities: CQS | UK | $1.5B | YTD Returns: 28.9 % | Multistrategy
- Pine River Liquid Mortgage: Jiayi Chen Pine River Capital Management | USA | $1.1B | YTD Returns: 28.0 % | Mortgage-based arbitrage
- Omega Overseas Partners A: Omega Advisors | USA | $1.4B | YTD Returns: 24.4 % | Long-Short
- Odey European: Odey Asset Management | UK | $1.8B | YTD Returns: 24.1 % | Macro
- Marathon Securitized Credit: Marathon Assets | USA | $1.2B | YTD Returns: 24.0 % | Asset Backed
- Palomino: Appaloosa Management | USA | $4.9B | YTD Returns: 24.0 % | Multistrategy
- BTG Pactual GEMM | USA | $3.6B | YTD Returns: 23.1 % | Macro
- Third Point Ultra | USA | $1.3B | YTD Returns: 22.1 % | Multistrategy
- Seer Capital Partners | USA | $1.2B | YTD Returns: 21.6 % | Asset backed
- Tiger Global | USA | $6.0B | YTD Returns: 21.0 % | Long-Short
- Eminence | Eminence Capital | USA | $3.0B | YTD Returns: 20.9 % | Long-Short
- Jana Master | Jana PArtners | USA | $3.8B | YTD Returns: 20.4 % | Event driven
- Structured Servicing Holdings | Structured Portfolio | USA | $1.9B | YTD Returns: 20.3 % | Mortgage-backed arbitrage
- Citadel Tactical Trading | Citadel Advisors | USA | $1.0B | YTD Returns: 20.0 % | Long/Short
- Viking Long | Viking Global Investors | USA | $1.7B | YTD Returns: 19.4 % | Long biased
- Cerberus RMBS Opportunities | Cerberus Capital | USA | $1.7B | YTD Returns: 19.0 % | Distressed
- Liber Max Partners | LiberMax Capital | USA | $2.3B | YTD Returns: 18.5 % | Structured Credit
- Pine River | Pine River Capital | USA | $1.6B | YTD Returns: 18.5 % | Multistrategy