Hedge fund strategies

Reuters/Lucas JacksonInvestors have actually piled into a select few hedge fund methods recently.

Barclays' capital solutions team analyzed how hedge funds' assets under management have grown within the last few 2 yrs.

Barclays surveyed 110 resources, collectively handling around $375 billion in assets.

Barclays additionally carried out one-on-one interviews with 30 of these hedge investment supervisors. They also looked through regulatory filings and Hedge Fund analysis's database made up of data on thousands of funds.

Hedge resources saw their particular assets climb up by 14per cent on average, the report said. The most used methods have already been dedicated to equity and bond areas.

"for example, Equity and Credit / [Fixed money Relative Value] had the greatest average AUM growth over the last two years (+20percent and +19per cent, respectively) – two times next highest strategy (Multi-strategy) within sample, " the report stated.

"This reflects both recent performance along with trader curiosity about these methods within the last few years."

Multi-strategy hedge resources, which often spend money on equity, interest rate and currency markets, are nevertheless witnessing their particular assets grow, not whenever within the last few several years.

Barclays in addition discovered that a lot of the systematic/ volatility and macro hedge funds saw either no change to their particular assets or a decrease.

Size also matters when it comes to asset flows. Greater firms are the ones having the investor inspections.

"Anecdotally, most of the ‘buzz’ inside HF industry has-been about smaller and emerging HFs, however most flows nonetheless visit larger, more established companies. Over the past four many years, at least four-fifths of net flows have gone to $1bn+ companies, plus than half have gone into largest firms ($5bn+). The next largest HF dimensions category, $500mn – $1bn, has seen an increase in flows on an annual foundation, but nonetheless reached a higher of just 3per cent of total flows across period, " the report stated.