Hedge fund assets shrank 2% in the second quarter, to $1.06 trillion, according to Barclay Group in Fairfield, Iowa, and managed futures grew 0.08%, to $121 billion.
In spite of the second-quarter decline, hedge fund assets have grown 1.63% this year through June 30, Barclay Group said on Thursday. Fund of funds assets grew in the quarter, up 11.64% to $564 billion.
"The data supports the anecdotal evidence that high-net-worth investors, who typically have shorter-term time horizons and higher absolute return targets, have been selling while risk-averse institutional investors with longer-term time horizons have been buying," Sol Waksman, the president of the hedge fund tracking group, said in a press release.
Barclay Group, founded in 1985, tracks more than 4,600 hedge funds and managed futures programs.
