The hedge fund industry took in $7.7 billion (0.3% of assets) in June, down from $19.1 billion (0.8% of assets) in May, according to new report from BarclayHedge and TrimTabs Investment Research.
"First half inflows to hedge funds this year totaled $82.5 billion (3.8% of assets), the most since 2007," said Sol Waksman, president and founder of BarclayHedge. By comparison, the industry took in $26.8 billion (1.5% of assets) in the first half of 2013.
Industry assets climbed to a six-year high of $2.35 trillion in June, according to estimates based on data from 3,441 funds. Assets rose 21.0% in the past 12 months but were down 3.6% from the all-time high of $2.4 trillion in June 2008, the report says.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry gained 1.4% in June. While this performance was the best in four months, it was less than the S&P 500’s 2.1% gain.
In the past 12 months, hedge funds returned 10.8%, while the S&P 500 gained 24.6%, the report revealed.
"Equity Long Only funds had the best returns in June, gaining 3.4% and outperforming all other fund categories," said Waksman, who also noted that Convertible Arbitrage funds fared worst, edging up 0.4%.
The monthly TrimTabs/BarclayHedge Survey of hedge fund managers found that hedge fund managers are narrowly divided on the short-term prospects for US equities.
July’s survey found 37.2% of respondents were bullish on the S&P 500 over the next 30 days, while 34.6% were bearish.
Optimism on the US Dollar Index rose to a two-year high, while bullish sentiment on gold hit a five-month high. The proportion of managers expecting crude oil prices to rise dropped to the lowest level in six months.