Wed, Apr 1, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner