Hedge fund assets reach another high in first quarter bolstered by March inflows

Aggregate hedge fund industry assets reached yet another new pinnacle, jumping to $3.108 trillion as of March 31, up 2.2% from the record high of $3.04 trillion in the previous quarter, showed data released Wednesday by eVestment.

March was a big month for the hedge fund industry with $15.7 billion of net inflows, the highest since August 2005, eVestment researchers said in their quarterly report.

Net inflows for the full quarter ended March 31 were $21.8 billion, compared to net outflows of $43.2 billion in the fourth quarter of 2016.

Calendar 2016 saw net outflows of $111.6 billion, while 2015 was characterized by net inflows of $44.1 billion, according to eVestment’s report.

Hedge fund strategies attracting the highest net inflows in the three months ended March 31 were: macro, $11.5 billion; managed futures, $6.5 billion; directional credit, $3.7 billion; market-neutral equity, $2.9 billion; and long/short equity, $2.7 billion.

“Demand for macro strategies appears to be extremely strong,” eVestment’s researchers wrote, noting that the $7.2 billion of net inflows to macro funds in March was the largest monthly inflow since January 2010 and quarterly flows were the highest since the three months ended March 31, 2010.

The quarter’s biggest net outflows were relative-value credit, $3.2 billion; event-driven, $3 billion; and mortgage-backed securities, $1.7 billion, according to the eVestment report.