We estimate the hedge fund industry posted an outflow of $2.9 billion (0.2% of assets) in July after posting an outflow of $2.7 billion (0.1% of assets) in June. Strategy preferences show that hedge fund investors remained risk-averse in July. Emerging Markets funds redeemed $1.9 billion (1.0% of assets), their third straight outflow. In contrast, Fixed Income funds posted an inflow of $1.2 billion (0.8% of assets), their fifth inflow in six months.
Funds of hedge funds posted an outflow of $670 million (0.1% of assets) in July, following inflows of $341 million in June. The performance of funds of hedge funds remains disappointing with a net loss of 0.77% for the year. CTAs attracted $3.8 billion (1.7% of assets) in July, their twelfth month of inflows in the past fourteen months.