Tue, Jun 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund investors ramp up mid year redemptions and for first month inflows don't keep pace

Tuesday, August 09, 2011
Opalesque Industry Update – Mid-year investor redemptions at hedge funds saw an increase in July, just as hedge funds started to show gains in 2011. HFN reports that with hedge fund managers returning an average of 0.82% in July, investors decided for the first time in over a year that they would be pulling more money than they would be allocating.

Although hedge fund assets increased overall in July (by 0.67% to $2.57tln), this was primarily performance driven. Investor inflows represented $8bn and the remaining $25bn was driven by performance. However, the uptick in redemptions which began in May, outpaced allocations for the first time in July. “Early indications show redemptions were greatest among equity related strategies and in particular statistical arbitrage, event driven, and emerging markets,” says a release by HFN Hedge Fund Industry Research.

The next big redemption dates for the hedge fund industry will be 45 days and 30 days before the end of the quarter, which means any incoming notifications will be seen between now and the end of this month. That will likely indicate how investors truly feel about hedge fund investing.

Performance
Commodities focused funds were the winner in July gaining +3.72% (led by energy funds) and Russia and Australia focused funds also performed well notching +2.02% and +1.85% respectively.

Although emerging markets are seeing some of the higher redemption levels, they did perform positively on average during the month with China and India up slightly but Brazil and Latin America focused funds down significantly (-3.10% and -2.17% respectively). In emerging markets fixed income continues to outperform equity funds.

And as was the case in most indices, credit is a much better place to be than equities. Distressed and fixed income arbitrage strategies performed best, +1.29% and +0.68%. Long/short equity funds (-0.22%) continued to disappoint while market neutral equity funds (+0.66%) have continued to shine relative to other equity groups. The HFN Short Bias Index posted its third consecutive positive month of performance, +1.79% in July.

Kirsten Bischoff

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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.