Total AUM dropped by $21bn bringing the size of the industry down to $1.89trn. Performance was badly affected in June, as managers lost $18.84bn over the course of the month, while negative flows accounted for the remaining $2.12bn in lost AUM.
It was not all bad news for the industry, however, as there was an uptick in launches, bringing the total number of new hedge funds to come to market during the year to more than 300.
Japanese hedge funds were the only ones not lose out in terms of performance during the month, and the only region to register a positive percentage in assets, 1.28%.
European and Asian hedge funds did attract some assets, $0.3bn and $0.4bn respectively, marking the seventh consecutive month of positive flows for the European industry and bringing its net assets up €25bn since the start of the year.
In terms of strategy macro funds registered the largest outflows, €0.7bn, and of the funds following this strategy those with an emerging market mandate saw the greatest redemptions.
Relative value funds were the strongest performers in June, gaining $0.29bn.
European hedge fund managers are legally obliged to comply with the AIFMD as of 22 July, find out why many remain unprepared here.
