Hedge Funds Grow In 2015 Despite Concerns Over Performance by Preqin
Total assets under management reach $3.20tn in 2015, up from $3.02tn at the end of 2014.
Preqin’s 2016 Global Hedge Fund Report finds that 2015 was another challenging year for the industry, during which the Preqin All-Strategies Hedge Fund benchmark recorded gains of 2.02%, compared with 4.65% in 2014. Despite this, total industry AUM increased by $178bn to reach $3.2tn as of November. Thirty-seven percent of surveyed fund managers said that they have seen an increase in institutional capital in 2015, and 59% reported that their total AUM had increased. Overall the industry saw net inflows of $71.5bn, but this gain occurred entirely in H1, as H2 2015 saw net outflows of $4.8bn across the industry.
It's no secret that this year has been a volatile one for the markets. The S&P 500 is down 18% year to date, while the Nasdaq Composite is off by 27% year to date. Meanwhile, the VIX, a key measure of volatility, is up 49% year to date at 24.72. However, it has spiked as Read More
Additionally, many investors have expressed concerns about performance going into 2016. A third of surveyed investors said that returns in 2015 had not met their expectations, and the same proportion stated their confidence in the ability of hedge funds to meet their portfolio objectives had decreased over 2015. For the first time, a greater proportion of investors reported to Preqin that they plan to reduce the amount of capital they invest in hedge funds (32%) than plan to increase it (25%) in 2016.