New flows into equity and credit funds drove H1 2014 to becoming the industry’s best opening stretch since 2007, according to data from eVestment.
After industry assets reached a new all-time peak in April and surpassed $3 trillion for the first time in May, hedge fund assets continued to rise until the end of Q2 2014 to stand at $3.032 trillion.
Investor flows to hedge funds were positive, but slowed at the end of Q2 2014. The $6.1 billion added in June was the lowest total since January and marks the end of a four-month span of elevated inflows that averaged over $22 billion per month.
The combined $99.7 billion of inflows in H1 far surpasses 2013 flows and the industry’s 2014 annualised core growth rate of 7.1 percent is its highest post-financial crisis level.
June flows were a microcosm of both Q2 and H1 2014. Investors preferred equity exposure, but interest in credit continued to rebound while commodity and managed futures flows continued their negative slide.
The biggest winners on a strategy level in Q2 were event driven funds, receiving $15.5 billion in new capital.
Activist investors continued to be an influential event driven subset, receiving $2.4 billion in June and $6.2 billion in Q2.
