Hedge funds took in a net US$18.5 billion in May, more than a forty-fold increase from April’s US$430 million inflow, according to a new report published by BarclayHedge and TrimTabs Investment Research.
"In May, the hedge fund industry saw its strongest net inflows in more than two years," said Sol Waksman, president and founder of BarclayHedge. "In the first five months of this year, the industry took in US$35.7 billion, compared with just US$484 million in the same period last year."
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The TrimTabs/BarclayHedge Hedge Fund Flow Report noted that Equity Long Bias Funds delivered a return of 2.6% in May, edging past the S&P 500’s 2.3% gain.
"This outperformance flies in the face of the trend in the past 12 months, when these funds earned 16.6% as the S&P 500 gained 27.3%," said Waksman.
The report, which is based on data from 3,368 funds, revealed that funds of hedge funds took in a net US$428 million (0.1% of assets) in May, reversing a US$4.2 billion outflow in April. Funds of funds underperformed the hedge fund industry by 67 basis points in May.
The report found that managers grew more bearish on the S&P 500 in June, but opinions were pretty evenly split in July.
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