Hedge funds have been hitting record assets as investor interest in these funds continues to grow, according to the May 2014 Hedge Fund Asset Flows Report from eVestment.
Hedge fund assets crossed $3 trillion in May for the first time on record, driven by investor flows that are at the highest level since the beginning of 2007. Investor interest in equity-focused strategies again surpassed interest in credit strategies in May and stand at the highest level since mid-2007.
Event-driven strategies received the most new assets in May driven by elevated interest in activist funds, while investor interest in credit strategies appears to have returned to solid footing.
MBS-focused funds, a bellwether for investor sentiment towards credit amid rate shifts, had strong flows in May.
Macro hedge funds had their second consecutive month of net inflows. The $1.6 billion of allocations were not enough to bring 2014 flows into positive territory, but may mark a shift of investor sentiment, according to the report.
