Q1 Sees Record High in Hedge Fund Inflows

May 25, 2004 (PLANSPONSOR.com) -Investors poured a record amount of net assets, $38.2 billion, into hedge funds during the first quarter, according to research compiled by Tremont's hedge fund and research unit, TASS Research.

This made Q1 the fourth consecutive quarter with a record for industry inflows, and follows the fourth quarter 2003 that took in $26.8 billion, ending a year during which it saw $72.2 billion in net assets, according to TASS Research (see  TASS: 2003 Banner Year For Hedge Fund Inflows) .

The strongest Q1 strategy performers were, for the third quarter in a row, Long/Short Equity with $8.2 billion, followed by Event Driven with $6.9 billion, and Global Macro with $5.5 billion.  

The strategies that attracted the most in asset flows were those that offered exposure to the broad markets.   TASS said that the record inflows reflected that investors continued to heavily favor equity-oriented strategies during the first quarter as they had in the previous two quarters.

The TASS Research quarterly analysis of hedge fund flows is based on a comprehensive analysis of approximately $542.4 billion in hedge fund assets.   TASS Research provides data and research on the performance of more than 5,900 funds.