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Hedge Fund Inflows Stabilize in Third Quarter
In its Asset Flows Report for the Third Quarter of 2005, Tremont Capital Management said that the top performing sector was Emerging Markets, which gained assets at a rate of 7.8%, something which was attributed to the success of markets in Eastern Europe and parts of Asia and Latin America. Event Driven, Long/Short Equity and Multi Strategy schemes all gained assets at a rate over 2% (2.6%, 2.4% and 2.1%, respectively).
However, Convertible Arbitrage, led the strategies with outflows, losing 5.5% of assets during the quarter, although this was better than the 9.2% outflow during the second quarter. Equity Market Neutral, Global Macro, and Managed Futures also suffered outflows during the period, losing 2.0%, 1.4% and 0.4%, respectively.
The strategies with the greatest net increases to assets during the quarter were Long/Short Equity ($5.6 billion inflow), Event Driven ($3.9 billion) and Emerging Markets ($2.9 billion).
The quarterly Tremont Asset Flows Report is based on an asset base of approximately $800 billion in hedge fund assets.