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CHART CENTRAL

Hedge fund performance up while capital walks out the door

The hedge fund industry grew by about $48 billion in the first quarter. The growth came from $52.7 billion in investment returns while $5.5 billion left in net client redemptions. The first quarter marked the sixth consecutive quarter of net outflows, albeit to a far lesser degree than the previous two quarters. The third and fourth quarters of 2016 saw net redemptions of $28.2 billion and $18.7 billion, respectively.

Equity hedge strategies advanced by a net $21.6 billion, with $25.9 billion in returns partially offset by $4.3 billion in redemptions. Returns and net client flows were both positive for event-driven and macro strategies, while relative value strategies had $10.8 billion in returns partially offset by $5.4 billion in net client outflows.