The hedge fund industry took in USD16.9 billion (0.7 per cent of assets) in May, down slightly from USD19.1 billion (0.8 per cent of assets) in April, according to TrimTabs and BarclayHedge.

“Hedge funds raked in USD72.2 billion in the first five months of this year, the strongest January-May inflows since 2007,” says Sol Waksman, president and founder of BarclayHedge.
 
Industry assets climbed to a five-and-three-quarter year high of USD2.3 trillion in May, according to estimates based on data from 3,426 funds. Assets rose 18 per cent in the past 12 months but were down six per cent from the all-time high of USD2.4 trillion in June 2008.
 
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted that the hedge fund industry gained 1.2 per cent in May, bouncing back from April’s 0.2 per cent loss but underperforming the S&P 500, which gained 2.4 per cent. In the past 12 months, the industry returned 7.6 per cent, while the S&P 500 rose 18.0 per cent.
 
“Funds targeting distressed securities are up 5.1 per cent this year, outperforming all other fund categories,” says Waksman, who noted that macro funds fared the worst, losing 0.9 per cent.