New hedge fund inflow estimated at $30 billion

On Wednesday 24th of February, financial giant Barclays stated that the success of hedge funds in 2020, can give the necessary incentive to new clients. The estimated new inflow is estimated to be as much as $30 billion this year. Roughly similar to the outflows during peak pandemic periods. “The bank’s ‘2021 Global Hedge Fund Industry Outlook and Trends’ report found that allocator sentiment towards hedge funds is the strongest it’s been since 2014, with 41 per cent of all investors planning to increase their hedge fund exposure this year”. The Barclays strategic consulting team estimated the net inflow of funds in Hedge funds this year to be $10-30 billion in the USA and around $450 billion in gross allocations. Which could define 2021 as the “breakout year” for hedge funds. In 2020 the returns produced by hedge funds were some of the best in the asset management industry, with the exception of a few venture capitalists. The total industry assets globally broke $3.6 trillion. “The average hedge fund capture rate was 56 per cent during the Covid-19 recovery, versus 42 per cent for the past four crises”, the Barclays report finds. Source: Hedgeweek #investing #etfs #planning #hedgefunds #activemanagement #success #assetmanagement #finance #markets #venturecapital #covid

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