Mon, Oct 24, 2016
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Other Voices: Follow the advice of investment consultants - I think not[more]

    Mark Rzepczynski, Founding Partner, Chief Investment Officer AMPHI Research and Trading, writes on Harvest Exchange: Investment consultants are a force to the reckoned with in the pension world. They advise and drive many pension decisions around the globe. Consultants literally control trillion