Hedge funds in July bounced into recovery, gaining 0.27%, according to the Eurekahedge Report.

However, hedge funds still underperformed underlying markets, as the MSCI World Index gained 1.34%.

Total assets under management (AUM) increased by US$12.6 billion during the month—the sector witnessed performance-based gains of US$10.9 billion while registering net asset inflows of US$1.7 billion. The total size of the industry now stands at US$2.24 trillion.

Read: Are small plans investing in hedge funds?

Here are some other key highlights:

  • Hedge fund AUM increased by US$106 billion in the first seven months of 2015, driven by strong investor inflows totalling US$54.1 billion and roughly US$52 billion coming from performance-based gains.
  • The CBOE Eurekahedge Relative Value Volatility Hedge Fund Index is up 5.12% year to date, coming in second place among all hedge fund strategic mandates. Relative value volatility funds have shown great consistency posting annualized returns of 10.33% at a low annualized standard deviation of only 3.75% since 2005.
  • Asia ex-Japan hedge funds lost 2.60%, as funds with Greater China exposure were among the hardest hit, down 8.49%.
  • CTA/managed futures funds have grown their asset base by 16% in 2015, largely on the back of strong capital inflows totalling US$25.6 billion.
  • Multi-strategy funds have grown their asset base by 9.25% in 2015 to reach US$362.4 billion, with new investor inflows accounting for over half of this gain.
  • North American managers have grown their asset base by US$63.4 billion and are up 3.01% year to date.

This story originally appeared on our sister site, Advisor.ca.

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Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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