Thu, Sep 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds redeem $5bn in September, industry assets down to 1.72tln say BarclayHedge and TrimTabs

Saturday, November 05, 2011

Sol Waksman
Opalesque Industry Update Hedge funds redeemed $5.0 billion in September, the second outflow in three months, report BarclayHedge and TrimTabs Investment Research. Industry assets decreased to $1.72 trillion, the lowest level in 12 months.

Hedge fund investors have grown much more cautious, says Sol Waksman, founder and President of BarclayHedge. They pumped $58.5 billion into hedge funds between January and June, the heaviest first-half inflow since 2007. But then they withdrew money in two of three months for the first time since 2009.

Hedge fund investors have been dumping emerging markets equities. Emerging markets hedge funds redeemed $3.7 billion in September, the third straight outflow as well as the heaviest since April 2009. Returns were ugly. The Barclay Emerging Markets Index plunged 7.7% in September, the worst return since October 2008.

While hedge fund investors are extremely bearish on emerging markets equities, ETF investors are wildly bullish, notes Leon Mirochnik, Research Analyst at TrimTabs. The flow data we track daily shows that emerging markets ETFs raked in $5.1 billion in the past four weeks. Performance has proven impressive. Some emerging markets ETFs returned as much as 19% in less than a month.

The latest TrimTabs/BarclayHedge Survey of Hedge Fund Managers reveals that managers remain bearish on domestic equities, although they are less downbeat than four weeks ago. Bearish sentiment on the S&P 500 decreased to 41% in October from 57% in September, while bullish sentiment increased to 35% from 16%. The survey also reveals that hedge fund managers are most upbeat on the Russell 2000 Value Index and the Russell Global Large Cap Index, while they are least upbeat on the Russell 2000 Growth Index.

This result does not surprise us, notes Mirochnik. The Fed is in the process of buying $400 billion in long-dated Treasuries and selling an equal sum in the short end, while markets are especially volatile and uncertain as the debt crisis in Europe rages. In an environment like this, it makes sense to us that hedge funds managers are much more interested in large caps and dividend yield than growth.

(press release)


The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The Survey of Hedge Fund Managers appears monthly in the TrimTabs/BarclayHedge Hedge Fund Flow Report, which provides detailed analysis of hedge fund flows, assets, and returns alongside topical studies. www.barclayhedge.com/products/trimtabs-hedge-fund-flow-report.html

TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidityincluding mutual fund flows and exchange-traded fund flowsas well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. www.TrimTabs.com

BG

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. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  2. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  3. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  4. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style

  5. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as