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eVestment: Hedge Funds Add $11.87bn In February

Investors poured $11.87bn into hedge funds in February, despite aggressive volatility putting an end to hedge fund monthly gains with the average hedge fund down -2.01%, according to reports from eVestment.  

Volatility returned to hedge funds in February at a level not seen since 2011. AlphaWeek previously reported that hedge funds were down in February as a result of violent volatility.

On 5th February the DJ Industrial Average dropped 4.6% in one day, its biggest day drop for seven years. The S&P 500 fell nearly 4% in February, while the VIX index jumped 47%. It prompted a huge sell-off, which spurred volatility. 

eVestment reports that hedge funds ended their longest aggregate streak of gains since 2004 in February, while CTAs produced their largest monthly loss in over twenty years, however allocations to the strategy continued. Macro hedge funds also posted a decline.

The positive inflows are good news for the industry; the $11.87bn allocated by investors was the largest early year demand since 2014. According to the report Allocations returned to event driven and multi-strategy products in February after many months of redemption pressures.