Net flows into the hedge fund industry in 2017 ended at USD30.13 billion, with total industry AUM at the highest level on record, according to eVestment’s Hedge Fund Industry Asset Flow Report for December/Q4 2017.

The industry also saw the lightest level of redemptions in December since 2010, unloading USD8.35 billion.
 
The report reveals that macro fund flows were negative in December for a fourth consecutive month, while equity strategies dominated industry flows in 2017, with investors aggressively allocating to alternative equities strategies. The inflow of USD30 billion was the third highest post-2008 to equity strategies (behind 2014 and 2010).
 
Net inflows into emerging markets in 2017 were the largest since 2009, led by Asia-focused funds (primarily China). Two thirds of reporting China-focused hedge funds saw net inflows in 2017 far better than the rest of EM strategies, of which 43 per cent saw inflows.