Citco finds FoHFs reporting positive inflows in H1

Fund administrator Citco reported that funds of hedge funds had positive returns and inflows in the first half of 2021.

The firm found that the FoHFs generated roughly $2.5 billion in net capital inflows for the first six months of the year. Returns were modest over that same time frame funds gained an average of 4.2% with a median return of 4.3%.

Funds with over $1 billion had better performance of 5.1% and funds with over 50 underlying fund holdings returned 5.7% in the first six months of the year. The vast majority of funds delivered positive returns, with 92% showing a positive performance over the period, which was similar to what funds reported in 2020.

Global macro strategies shown in the first half with gains of 8.63%, according to the Citco report.

Earlier this month, Citco, the hedge fund industry’s largest asset servicer with $1.6 trillion in assets under administration, said returns remained strong in Q2 and investor inflows were gaining ground as well.

Gross subscriptions for Citco-administered funds were $50.5 billion with clear preferences for multi-strategy, global macro, private equity hybrid funds and funds of funds.