AllAboutAlpha reports that a new report on hedge fund inflows indicates that the rate at which money is coming into the hedge fund industry reflects that industry’s improved performance, but that if these figures are segmented by strategy or geography, the different rates at which they are attracting money do not very accurately reflect their different levels of successful performance.
BarclayHedge, the hedge fund data vendor, and TrimTabs Investment Research, a strategy-oriented research firm, announced that hedge funds received their seventh net inflow in eight months in August, bringing their inflow for the first eight months of 2011 to an impressive $51 billion. The figure for August alone is $6.1 billion. Redemptions exceeded inflows in July, but July is thus far the exception in 2011. Looking the big picture, inflow was negative every month from September 2008 through April 2009. But in the 28-month period beginning with May 2009, inflow has been negative only six times.
Sol Waksman, the founder and president of BarclayHedge, attributes recent inflows to the excellence of recent performance. “While the S&P 500 plunged 10.6% in the four months ended August, the Barclays Hedge Fund Index decreased only 5.6%,” he said. “Additionally, our preliminary data for September reveal that hedge funds outperformed the S&P 500 by more than a 2:1 margin again last month.”
Wait...wait. There's more at http://allaboutalpha.com/blog/2011/10/12/survey-inflows-dont-reflect-performance-differences/
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