Weak Investor Allocations Continue To Weigh On Hedge Funds

Hedge funds did a bit better last month in terms of performance-based gains, but unfortunately investor outflows continued, according to data from Eurekahedge. Overall the Eurekahedge Hedge Fund Index was in the red for September while the broader world market was in the green.

Hedge funds down 0.06%

Preliminary data indicates the index declined 0.06% in September, while the MSCI World Index was up 0.07% for the month. Hedge funds with a focus on Asia continued to struggle while U.S. funds continued to recover. Funds focused on Greater China struggled the most as the trade war between the U.S. and China continued.

Preliminary September data suggests $5.2 billion in performance-based gains and net outflows of $4.1 billion for the month. Eurekahedge's final numbers for August point to performance-based losses of $2.3 billion and net outflows of $4.3 billion for the month.

After combining the September and August numbers, Eurekahedge pegs assets under management in the world's hedge fund industry at $2.45 trillion.

2018 is shaping up to be the worst year since 2011