Thu, Oct 27, 2016
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.

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. 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