Mon, Oct 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Update: Hedge fund industry assets down to $2.46tln (end-Sept) as investors withdrew around $19.3bn in Q3

Friday, October 28, 2011
Opalesque Industry Update – eVestment HFN has published its hedge fund industry summary for September 2011. Highlights from the report are below.

• Total estimated hedge fund assets at the end of September 2011 were $2.463 trillion, a decrease of 2.92%, or $74.1 billion from August. Performance accounted for a decrease of $59.5 billion and investors accounted for a net outlfow of $14.5 billion.

• Average hedge fund return in Q3 2011 was -5.97% and investors withdrew an estimated net $19.3 billion. These represent the first quarterly loss and net redemption since the financial crisis.

• Falling commodity prices along with volatile equity markets and large losses from emerging market funds weighed most heavily on hedge fund returns in September.

• Fixed income strategies continued to outperform equity funds, the latter posting negative average returns for the fifth consecutive month and falling -9.34% in Q3 vs. -1.39% for FI strategies.

• Mortgage sector funds posted their second consecutive aggregate decline and their worst return monthly since November 2008, however the HFN Mortgages Index was +9.28% through Q3 2011.
• Investors withdrew more than they allocated to Japan focused funds in September at a rate above the industry average. Developed Europe focused funds also faced net investor outflows for the fourth month in the last five.

• Emerging markets funds continued to lose assets at an above average rate in September. The group had an estimated $1.8 billion in net redemptions during the month and $4.8 billion in Q3.

• Investors appeared to be reducing exposure to credit strategies during Q3 as redemptions came at a higher rate than that of equity strategies for the first quarter since Q1 2010.

• Fixed income arbitrage and event driven strategies had among the highest rates of net outflow in September. Global macro was among the few strategies with net allocations.

• Asia domiciled funds continued to increase AUM due to net investor flow in September. The region has seen above average growth rates throughout 2011.

High volatility across most major markets was the norm in September caused primarily by the ongoing sovereign crisis in Europe and worries over the size and timing of the EFSF bailout fund. The resulting reduction of exposures to risky assets during the month appeared to benefit FX and government bond focused strategies which posted aggregate returns of +1.88% and +1.12%, respectively, during the month.

(press release)

BG

What do you think?

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

Banner

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. Opalesque Roundtable: Where are all the good ESG hedge funds?[more]

    Benedicte Gravrand, Opalesque Geneva: What are the benefits of sustainable investing? Many pension funds look to focus on that angle to reflect their company’s good governance, but face many challenges while doing that. A portfolio manager at Univest, a large Dutch pension fund, discusses this is

  2. Bill Gross gives his first investment outlook for Janus fund[more]

    Bill Gross strikes a gloomy tone in his first note to investors at his new gig at Janus Capital. Bill Gross, the renowned bond fund manger, struck a pessimistic chord in his first note to investors at his new gig at Janus Capital. His notes, usually full of silly commentary and upbeat advice, took a

  3. Investing - Big investors move to shore up Fannie, Freddie trade, Two hedge funds eye $1bn support to Sahara to secure Subrata Roy's release[more]

    Big investors move to shore up Fannie, Freddie trade From Forbes.com: Two of the nation’s most prominent investors who have been leading the charge to make a big score out of the shares of Fannie Mae and Freddie Mac moved on Friday to shore up shares of the mortgage giants that plunged r

  4. Opalesque Exclusive: What's next for trend followers?[more]

    Bailey McCann, Opalesque New York: New research out from Ibbotson touches on a key debate happening among investors and fund managers, specifically whether long term trend followers can survive in the new

  5. Swiss insurance investment manager opens office in insurance traders' Mecca; London[more]

    Benedicte Gravrand, Opalesque Geneva: Twelve Capital, a swiss manager focused on insurance related investments, was authorised by the UK's Financial Conduct Authority (FCA) as a MiFID investment firm on October 1st and opened its new London office. "In an effort to enhance its investment