Hedge Fund Industry Asset Flow Report May 2023: "May marked the 12th consecutive monthly net outflow for the hedge fund industry. It was also the largest net outflow for the month of May we’ve seen since at least 2009."
https://www.evestment.com/news/hedge-fund-industry-asset-flow-report-may-2023/
Aggregate Net Outflows Persist Amid Low Volume of Asset Movement
May marked the 12th consecutive monthly net outflow for the hedge fund industry. It was also the largest net outflow for the month of May we’ve seen since at least 2009.
While not great, that sounds worse than it actually is because May has tended to be a month of moderate net inflows for the industry. The issue in May 2023 appears to have been a dearth of meaningful new allocations to offset persistent redemption pressure.
May’s data illustrated an unwelcome emerging trend reversal, a hopefully short-lived trend pause, and mostly trend continuations. Unfortunately, the only continuing themes we’ve seen this year have been persistent net outflows with scattered capital raising successes across all strategies.
Investors removed an estimated net $9.96 billion from hedge funds in May. Performance accounted for an additional decrease in assets. The result of both factors was a $18.8 billion decrease in assets to an estimated $3.401 trillion.
Industry Flows:
Wut mean?
Historically, May has been a month of net inflows for hedge funds, but May 2023 was an exception. For ten consecutive years, from 2009 to 2018, May saw net inflows into the hedge fund industry. Even when annual net outflows became the norm in 2018, May often still saw net inflows. However, May 2023 saw the largest net outflow yet, not due to widespread redemptions, but rather to a lack of meaningful new interest in hedge funds.
- Managed futures strategies, previously popular, saw a continuation of net outflows from April to May, likely due to recent performance losses.
- Multi-strategy funds, usually a strong performer in the hedge fund industry, saw a slowdown in net flows for a second month in 2023, with only small new allocations in May.
Investor sentiment towards a subset of macro funds has shown instability.
- Despite some large products negatively impacting net flows, a few managers have successfully attracted new capital.
Equity-focused strategies, specifically long/short equity funds and event-driven funds, are struggling to attract and retain capital.
- In May, over half of the managers in these segments experienced net outflows, especially event-driven funds with nearly 60% outflows.
- Firms successfully raising new capital and limiting redemptions are the minority.
109th Annual Report of the Board of Governors of the Federal Reserve System to Congress https://www.reddit.com/r/Superstonk/comments/14zmd1h/federal_reserve_alert_109th_annual_report_of_the/
https://www.reddit.com/r/Superstonk/comments/12eba61/treasury_alert_janet_yellens_remarks_ring_al
https://www.reddit.com/r/Superstonk/comments/1275t3f/sec_alert_commissioner_caroline_a_crenshaw_the/
https://www.reddit.com/r/Superstonk/comments/13dzq6o/sec_chair_gary_gensler_many_hedge_funds_are/
https://www.reddit.com/r/Superstonk/comments/13ifeqw/3_times_now_in_the_last_5_days_hedge_funds_have/
https://www.reddit.com/r/Superstonk/comments/13ifeqw/3_times_now_in_the_last_5_days_hedge_funds_have/
TLDRS:
- Investors removed an estimated net $9.96 billion from hedge funds in May.
- Investors pulled $11.57 billion out of hedge funds in April
- Investors removed an estimated net $3.32 billion from hedge funds in March.
- Investors removed an estimated net $4.83 billion from hedge funds in February.
- Investors removed an estimated net $4.18 billion from hedge funds in January.
- Investors removed an estimated net $111 billion from hedge funds in 2022.
- From 1/1/2022-5/31//23, Investors have removed $144.86 billion from hedge funds.
- Hedgies r fukt
