While even a small amount of new money shows continued interest in hedge funds among investors, the rise in investor interest in other alternative asset classes, particularly private equity and other private markets investments, could pose a longer-term challenge for the hedge fund industry. "The data in May shows flows were near flat and the volume of asset movement was high," said eVestment Global Head of Research Peter Laurelli. "This is a sign that new allocations are being made while redemptions persist. This is not how an industry grows and thrives.