Investors pulled a net $34 billion from global hedge funds during the first half of 2016, according to research from data provider Preqin, but the fund flows also reveal several clear strategies that are proving successful within the industry.
"Growing concern from investors regarding the recent performance of the hedge fund sector has manifested as two consecutive quarters of net outflows, taking the total size of the industry to approximately $3.1 trillion as of the end of (the second half of) 2016," Amy Bensted, the head of hedge fund products at Preqin, said in the report at the end of August.
The research - which uses the company's online hedge fund tool - revealed credit and equity strategies bore the brunt of the outflows, losing a net $26 billion and $25 billion respectively during the six month period.
However, CTAs were much more in favor, managing to net $11 billion of inflows. These are commodity trading advisers (CTA) which focus on the buying and selling of specialized financial contracts, such as futures, related to commodities investments. While many use systematic trading or follow trends, discretionary CTAs also exist. And the good times look set to continue for this particular niche, with investors planning to allocate the most net new money to this strategy during the remainder of 2016.