Hedge Fund Assets Under Management Reach $2 Trillion

Hedge Fund Assets Surpass $2 Trillion in 2011

Hedge fund assets under management (AUM) reached $2 trillion USD as of June 30, 2011. This is according to Hedge Fund Research (HFR). Assets surged past $2 trillion with $62 billion in net inflows for January 1 - June 30, 2011.  Most of these net inflows went to large hedge funds in excess of $5 billion, but with such large hedge funds accounting for 62% of overall hedge fund assets, the inflows were shared relatively equally by large and small hedge funds alike.

Hedge Fund Inflows to Asia to Increase

According to Barclays Plc, inflows to Asia-based hedge fund managers may increase by $8 billion this year. Many hedge fund managers believe the best growth opportunities still exist in Asia. The threat of added regulation in the US and EU may give hedge fund managers in Asia an additional advantage over their western counterparts.

Overall, assets under management in Asia-Focused funds are expected to increase to $71 billion by the end of the year. Only a third of that amount would be managed by hedge funds based in Asian countries.

Most hedge funds in Asia are located in Singapore, Hong Kong, China, and Japan.

Brazilian Hedge Funds See Huge Inflows

Brazilian hedge funds had more than $4.5 billion in inflows during the month of July. This is the largest monthly inflow to Brazilian hedge funds ever. The increased investor appetite comes amid low global interests and increased demand for riskier, higher yielding assets.

Brazilian hedge funds manage about $150 billlion in total assets. The July inflows represent an increase of about 3%.

The Brazilian stock market, Bovespa, had its best month in July in more than 10 years.