Wed, Jul 8, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge Funds Redeem $5.2 Billion in December 2011; Industry Assets Sink to Lowest Level in Nearly Two Years

Tuesday, February 07, 2012

Sol Waksman
Opalesque Industry Update: BarclayHedge and TrimTabs Investment Research reported today that hedge funds redeemed an estimated $5.2 billion in December 2011 and underperformed the S&P 500 for the year. Industry assets fell to $1.64 trillion, down 7.7% for 2011, and hit their lowest level since February 2010.

“The Barclay Hedge Fund Index fell 0.4% in December after decreasing 1.4% in November,” says Sol Waksman, founder and President of BarclayHedge. “From May 2011 onward, hedge fund performance was negative in every month except October.”

“Hedge funds underperformed the S&P 500 last year, falling 5.5% compared to a flat return for the S&P 500,” says Leon Mirochnik, an analyst at TrimTabs. In December, only three of 14 major hedge fund categories tracked by TrimTabs and BarclayHedge — Equity Market Neutral, Merger Arbitrage and Fixed Income — showed positive returns.

Meanwhile, the latest TrimTabs/BarclayHedge Survey of Hedge Fund Managers reveals growing numbers of fund managers are becoming more optimistic about the prospects of U.S. equities. The survey of 108 hedge fund managers found bullish sentiment on the S&P 500 at 45.4% in January 2012, up from 42% in December and the second-highest reading since December 2010. Managers were surveyed in the third week of January.

While hedge fund managers are seeing brighter days ahead, the TrimTabs Demand Index is far less optimistic. "The Demand Index is down more than 50% since the beginning of January, which stands as a warning to bullish market participants,” Mirochnik says. The Demand Index, which monitors 21 key sentiment indicators to time U.S. equities, signaled a strong bullish stance in late November, just before the markets surged. “This sudden reversal in January is cause for caution,” Mirochnik says.

TrimTabs Hedge Fund Flow Report

Press Release

BM

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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner