Despite plummeting markets worldwide, both hedge fund performance and capital inflows into hedge funds are on the rise, according to data provided by GlobeOp and Eurekahedge.
The Eurekahedge Hedge Fund Index gained 0.62% in July, compared to a drop of 2.59% on the MSCI World Index. Eurekahedge, however, has not yet released figures for the beginning of August, when the markets faced a more significant tumble.
Also telling are the results of the GlobeOp Capital Movement Index, which shows a rise of 1.11% in August. The figure, which represents the monthly net of hedge fund subscriptions and redemptions of the funds administered by GlobeOp, substantiates the Eurekahedge findings that investors have more confidence in hedge funds than the greater markets.
Investors committed new capital in August despite unsettled markets in the U.S. and Europe, says Hans Hufschmid, GlobeOp CEO. August is usually a positive month for hedge fund capital flows, and 2011 continued that trend.
Year to date, hedge funds are 2.52% ahead of global markets, according to Eurekahedge. The firm says approximately $5 billion of capital has entered the hedge fund industry so far in 2011. July was the eighth consecutive month of hedge fund inflows.
That said, returns are not as greater this year as they were in 2010 (10.84% last year compared to 0.62% so far this year).
(CG)