Hedge fund industry assets grew by a net $24.6 billion in the first quarter, according to data from Tremont Capital Management. More than $10 billion went into new hedge funds, Tremont researchers noted in a statement. The strategies with the highest net inflows in the first quarter were event-driven, with $8.2 billion; multistrategy, $6.5 billion; fixed-income arbitrage, $4.3 billion; and emerging markets, $2.8 billion.
"The first quarter asset flows show that investors were seeking out strategies that seem to do best in uncertain market cycles, such as event-driven and multistrategy funds. They also underscore the fact that investors are interested in new opportunities as well as in strategies such as convertible arbitrage that have not fared well, in order to be positioned for future opportunities in those sectors," Robert Schulman, Tremont CEO, said in a statement.
The only hedge fund strategy to show a net loss in the quarter was convertible arbitrage, which had outflows of $2.8 billion and inflows of $1 billion, according to Tremont data.
