Aggregate hedge fund assets increased 1.5% to $2.898 trillion in the three months ended June 30, showed Hedge Fund Research analysis.
Growth of total hedge fund industry assets, including hedge funds-of-funds assets, was essentially flat at 0.4% in the first half of the year, according to HFR data released Wednesday.
Net outflows slowed in the second quarter to $8.2 billion, compared to the net $15.1 billion in outflows that occurred in the first quarter.
Net asset flow was negative in the second quarter for all major hedge fund strategies, but investment gains were positive, HFR data showed. Performance gains by the industry as a whole were $50.2 billion.
In the quarter ended June 30, event-driven hedge fund strategies experienced the largest net asset decline of $3.6 billion, but also had the highest performance-based gain of $17.2 billion. Macro strategies experienced $2.6 billion of net outflows and $11.2 billion of performance gains; relative value, net outflow of $1.6 billion and performance gains of $14 billion; and equity hedge, net outflow of $300 million, and performance gains of $7.8 billion.
HFR analysis also found that aggregate assets of macro hedge fund strategies hit an all-time peak of $556.6 billion as of June 30.
Hedge funds-of-funds assets declined 1% to $632.3 billion in the second quarter and fell 3.8% in the six-month period. Net outflows from hedge funds of funds in the quarter were $8.5 billion and $11.4 billion for the six months ended June 30.The June 30 asset figure is the hedge funds-of-funds industry's lowest level since Dec. 31, 2011, when assets totaled $629.6 billion, HFR research showed. Total net outflows from hedge funds of funds in HFR's universe totaled $251.7 billion between Dec. 31, 2008, at the height of the financial crisis and June 30.
The number of hedge funds of funds has dropped to 1,601, the lowest level since the end of 2003 when 1,232 funds were operational. The peak number of hedge funds of funds was 2,462 as of Dec. 31, 2007, HFR data showed.
“Hedge fund industry growth accelerated in (the second quarter) … driven by strong quantitative commodity trading adviser gains on Brexit Friday (June 24) and broad-based, industrywide gains across equity, commodity and currency markets pursuant to the Brexit dislocations,” said Kenneth J. Heinz, president of HFR, in a news release.