Hedge fund assets surged to $4.07 trillion by the end of March as assets under management topped $4 trillion in February. According to CNBC, the asset boom was aided by the pandemic, with hopes of economic recovery and stimulus spending also fueling gains.
Hedge funds have now generated trading profits amounting to about $552.1 billion in the last 12 months.
Overall AUM has soared by more than 42% amid continued pouring of money into economy by Fed.
Funds targeting specific sectors attracted $5.8 billion while event-driven funds took in $3 billion, and multi-strategy ones saw $2.9 billion.
Asian funds took in $5.6 billion, with investors in emerging markets redeeming about $3.8 billion of stake.
Longer-term equity funds lost $3.3 billion as macro funds recorded $1.7 billion outflows.
Despite gains in hedge funds, their 7.06% year to date returns trail S&P 500’s 11.84%.
