Investors are starting to return to hedge funds. After the
industry in December suffered its largest monthly
outflow since April 2009, capping a year of net outflows,
hedge funds enjoyed net increases of capital in each of the
first three months this year. In fact, investors poured $15.7
billion into hedge funds in March alone, the largest amount in
the past 20 months, since August 2015, according to a new
report from data tracker eVestment.
"For the hedge fund industry to be successful and grow
assets outside of performance gains, it must offer investors
something they cannot access elsewhere at a cheaper cost,"
eVestment asserts in a press release. "Additionally, market
conditions must be such that those offerings are attractive,
regardless of prior or recent performance. This is exactly what
we’re seeing after one quarter of 2017 is in the
However, the distribution of these inflows was far from
equal. According to eVestment, just 52 percent of funds in its
database gained assets, while 48 percent lost assets.
The majority of the new money went into macro, managed
futures, and quantitative equity strategies. Macro inflows were
the largest since January 2010. Altogether, investors pumped
$11.46 billion into macro.
"Investors are showing clear demand for strategies which
focus on thematic approaches to major public and derivative
markets," eVestment states in its report.
Pershing Square Holdings, the publicly-traded closed-end
fund offered by Bill Ackman’s
Pershing Square Capital Management, announced it will buy
back up to 5 percent of its shares. As part of the deal, it
will boost the ownership limit to 4.99 percent from the current
4.75 percent so those investors near the current limit will not
breach the ceiling. PSH will use general corporate funds to
fund the buyback. "PSH believes that the repurchase is a good
use of cash and will assist in reducing the current discount
between its share price and its NAV," Pershing Square says in a
press release. The stock now trades at a roughly 15 percent
discount to NAV, a relatively inexpensive way to get into
Ackman’s fund if you qualify and are bullish on
Singulex, which develops direct molecular detection
technology and cardiovascular monitoring, announced it closed
on a $50 million senior-secured debt facility with health care
"Perceptive Advisors is pleased to partner with Singulex in
their journey to advance understanding and enable immediate
action to identify and treat a range of disease," said Sam
Chawla, portfolio manager at Perceptive, in a press release.
"The company has a proven record of results and partnerships
with leading health and life science innovators."