Tue, Sep 30, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund investors opt for credit strategies, redemptions continue in July

Wednesday, August 22, 2012

Bailey McCann, Opalesque New York: Hedge fund assets increased 2.1% in July to $2.53tn , but investor redemptions persisted for the fourth month in the last five, accounting for outflows of $9.2bn, according to new data from eVestment. Traditional institutional account inflows were light in Q2 and investors favored credit strategies across both universes. The data shows clearly that investor confidence in equity strategies has hit a new low.

The report notes, "directional equity focused hedge funds continued to be a primary source of the industry’s redemptions in July as $4.4bn exited. This marks the fifth consecutive month, twelfth in the last thirteen, that equity hedge funds have recorded outflows. The trend is similar on the traditional institutional account side where investors redeemed a net $52.4bn from equity strategies in Q2 following light Q1 inflows."

Investors are also exiting European focused strategies and global macro strategies which have largely underperformed in 2012. On the traditional side, global tactical institutional accounts had well above average rate of net inflows in Q2. Investors are instead flocking to credit which saw an estimated $12.8bn in July inflows and $33.5bn in 2012.

Although not all credit strategies are seeing interest, the report highlights some nuance in terms of where investors are allocating - "while there have been large redemptions from institutional accounts with dedicated European credit exposure, hedge funds targ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is