Jun 27, 2019

Investors bought winning hedge funds and dumped losers in May

Data: eVestment; Chart: Axios Visuals

Global investors pulled $3.78 billion from hedge funds in May, despite overall outperformance against the stock market, a new survey from data firm eVestment shows. However, there was significant difference in redemptions based on size and performance.

Between the lines: Hedge funds with strong performance during the month saw inflows across asset classes, with the lone exception of multi-asset funds, while hedge funds that lost money broadly saw investors pull out their cash.

  • Hedge fund returns overall were negative last month after 4 straight months of gains to start the year, but still posted much slimmer losses than the broader U.S. stock market.

The big picture: Hedge funds have seen $25.43 billion of outflows so far this year, and performance losses have further reduced the industry's total assets under management to $3.24 trillion.

Go deeper: The hedge fund moment is over

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Energy deputy secretary nominee in hot water after contradicting Trump

Mark Menezes speaks at a forum in Addis Ababa, Ethiopia, June 12. Photo: Minasse Wondimu Hailu/Anadolu Agency/Getty Images

Trump administration officials are internally raising concerns about President Trump’s nominee for Energy deputy secretary, who appeared to openly contradict the president on nuclear waste storage at Nevada’s Yucca Mountain last week.

Driving the news: While speaking at a House Energy and Commerce subcommittee hearing last Wednesday, Mark Menezes told members of the panel that the Trump administration is still interested in storing nuclear waste at Yucca Mountain and that “what we're trying to do is to put together a process that will give us a path to permanent storage at Yucca."

Exclusive: Pompeo says new China media restrictions "long overdue"

Photo: Mark Wilson/Getty Images

The State Department announced Tuesday that it has designated five Chinese state media outlets as "foreign missions," meaning that they will be treated as arms of the Chinese government.

Driving the news: In his first public statement on the new designation, Secretary of State Mike Pompeo tells Axios that the five outlets are "clearly controlled by the [Chinese Communist Party], and we are simply recognizing that fact by taking this action.”

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