An estimated $74 billion flowed into single-manager hedge funds in the second quarter, bringing the total to $1.72 trillion, an increase of nearly 4%, according to Hedgefund.net’s quarterly report. The inflow was the second largest in five quarters, though it was dampened by negative performance that led to a drawdown of more than $8 billion. All strategies except for short-biased fund saw rises in new allocations, with long/short strategies recording the biggest infusion of new funds (around $28 billion), with equity market neutral funds a distant second ($11 billion). Other gainers included funds using options strategies (up 7.57%), distressed funds (up 6.47%), convertible arbitrage (up 4.44%) and macro funds (up 3.82%), Assets in emerging markets, after seeing double-digit growth in seven consecutive quarters, fell 0.84% due to massive sell offs in May and June, says Hedgefund.net. Other losers include funds investing in Asia (down 1.75%) emerging market equity (down 4.43%) and long-only funds (down 3.78%), Assets in funds of hedge funds climbed 4.39% to around $860 million.