Wed, Oct 26, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds post outflow of $2.9bn, or 0.2% of assets in July 2010, industry assets at lowest level since November 2009

Thursday, September 02, 2010
Opalesque Industry Update - TrimTabs Investment Research and BarclayHedge reported that the hedge fund industry posted an estimated outflow of $2.9 billion, or 0.2% of assets, in July 2010, the second straight outflow as well as the third in four months. Industry assets sank to $1.53 trillion, the third straight decrease and the lowest level since November 2009.

“Hedge funds posted a positive return in July, but they did not regain the ground they lost in May and June,” said Sol Waksman, CEO of BarclayHedge. “They also underperformed the S&P 500 by five percentage points.”

Commodity trading advisors (CTAs) posted a heavy inflow of $3.9 billion, or 1.7% of assets, in July, the fifth straight inflow as well as the twelfth in 14 months. CTAs boast a solid year-to-date return of 3.2%. Meanwhile, funds of hedge funds redeemed $670 million, or 0.1% of assets, in July.

“Funds of funds are in a bad way,” said Vincent Deluard, Executive Vice President at TrimTabs. “They posted only five inflows in the past 25 months, and assets sit at the lowest level since February 2005. Investors continue to abandon them because they have underperformed hedge funds by fourteen percentage points since March 2009.”

Hedge fund investors were risk averse in July. Emerging markets funds redeemed $1.9 billion, or 1.0% of assets, the third straight outflow. In contrast, fixed income funds posted an inflow of $1.2 billion, or 0.8% of assets, the fifth inflow in six months. Investors are chasing standout performance.

“Fixed income funds posted a negative return in only one of the past 19 months, and they are up 7.7% for the year—far and away the best return of any hedge fund strategy,” noted Deluard. “Little wonder that investors are drawn to them like moths to a flame.”

The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Hedge Fund Flow Report provides detailed analysis of these flows as well as relevant topical studies. For further information, please visit Source


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. 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

  2. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa

  3. Investing - Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities, Lansdowne's Roden says likes animal genetics company Genus[more]

    Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities From As ValueWalk reported back in February, earlier this year Andrew Lawrence set out to raise $250 million to $500 million for a fund that will buy stakes in hedge funds that have suspended redem

  4. 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

  5. Opalesque Roundtable: Style drift, poor communications and credibility fatigue are biggest red flags for hedge funds investors[more]

    Komfie Manalo, Opalesque Asia: Style drift, poor communications and credibility fatigue are the biggest red flags for hedge funds investors, said participants of the latest 2016 Opalesque Investor Roundtable, sponso