Record Asset Flow to Managed Futures

September 03, 2003 at 08:00 PM
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NEW YORK (HedgeWorld.com)–Managed futures funds received US$9.1 billion in new capital during the second quarter of this year, making for an almost 16% increase, according to research specialist the Barclay Group.

Total assets under management in managed futures rose to US$66.5 billion as of the end of June. The year-to-date increase is an unprecedented 30.6% according to Sol Waksman, president of the Barclay Group.

"This data suggests that sophisticated investors are beginning to understand the importance of broad diversification," said Mr. Waksman. "Investors who are building portfolios of hedge funds are wise to include managed futures as a diversifier within their hedge fund portfolio because managed futures funds are non-correlated with stocks, bonds and most hedge fund strategies."

At the beginning of 2001, managed futures assets were a little more than US$38 billion. They grew to US$51 billion during 2002; apparently as investors were attracted to the strategy's strong performance amid the market slump. It previously had been languished in the 1990s bull market.

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