BarclayHedge and TrimTabs Investment Research reported that the hedge fund industry added assets for the third consecutive month in September, taking in a net US$4.1 billion (0.2% of assets).
This estimate is based on data from 3,340 funds.
Sol Waksman, president and founder of BarclayHedge, said: "The hedge fund industry has received $51.6 billion in 2013, which is a huge turnaround from the outflow of $2.6 billion in the same period last year. Industry assets hit a five-year high of $2.0 trillion in September," added Waksman.
The TrimTabs/BarclayHedge Hedge Fund Flow Report noted that hedge fund assets are up 10.3% in 2013. Nevertheless, they are 17.9% below the all-time peak of US$2.4 trillion in June 2008.
Waksman added: "Equity Long Only hedge funds had their best run since January 2012, gaining 5.9% in September and reversing a 1.6% loss in August."
Equity Long Bias funds, meanwhile, gained 3.1% in September, reversing a 0.8% loss in August and notching their best gain since July.
Funds of hedge funds gave up US$2.6 billion (0.6% of assets) in September, adding to an outflow of US$5.0 billion in August. Funds of funds attracted net inflows in just two of the past 24 months.
The monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers found that a majority of hedge fund managers were bullish on US stocks for the first time this year in October. While a plurality of managers were neutral on US Treasuries, bearishness on the US Dollar Index rose to a 10-month high.