In Summary
In the wake of recent market volatility, even more investors are seeking downside protection from hedge funds, resulting in large inflows into the hedge fund industry. But if we look back at the growth of hedge fund AUM over the past decade, where has the huge growth over the period come from?
Hedge fund industry assets have grown by 63% in the past decade.
When we look at the hedge fund industry in aggregate, the vast majority of this dollar growth has come from positive performance, rather than net inflows.
However, dig a bit deeper and you find that this is not true across the board. When we look at funds individually, only 47% of funds have generated profits that have exceeded net inflows.
