Investing August 19, 2003

Tremont: Hedge Funds Net Record Inflow For Q2

August 19, 2003 (PLANSPONSOR.com) - Continuing the asset gaining behavior of the first quarter, investors poured a record $13.83 billion in net assets into hedge funds during the second quarter of 2003.
Reported by

With the second quarter’s record pick up, hedge funds have now added $16.28 billion in net new assets so far in 2003.    This came after netting $6.98 billion during the first quarter (See Fixed Income Arbitrage Leads Q1 2003 Hedge Fund Returns ), according to Tremont’s TASS Research.

Leading the surge during the second quarter was Convertible Arbitrage, which attracted $2.68 billion in new assets.   This was followed up by two of last quarter’s leaders, Global Macro and Managed Futures, which gained $2.48 billion and $2.28 billion, respectively.

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Only one strategy was on the outside looking in for the quarter:   Dedicated Short Bias.   The shorts were done in by a wave of good sentiment throughout the markets, recording an outflow of $64.4 million.

The TASS Research quarterly analysis of hedge fund flows is based on an analysis of approximately $350 billion in hedge fund assets.  The TASS Asset Flows Report for the first quarter is available through  www.hedgeworld.com .

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