Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

TrimTabs and BarclayHedge report hedge funds lost $14.2bn in 2012

Tuesday, February 12, 2013
Opalesque Industry Update — BarclayHedge and TrimTabs Investment Research reported today that hedge fund investors redeemed a net $14.2 billion in 2012, reversing a $50.7 billion inflow to the industry in 2011. The results are based on data from 3,492 funds.

Hedge fund redemptions hit a 44-month high of $20.7 billion in December 2012, according to the latest monthly TrimTabs/BarclayHedge Hedge Fund Flow Report, which noted that the industry earned 8.5% in 2012, far below the S&P 500’s 13.4% increase for the year.

“Underperformance versus the S&P 500 Index is a likely culprit in last year’s outflows,” said Sol Waksman, founder and president of BarclayHedge. “We found that from 2010 through 2012, hedge funds gained 14.1% while the S&P 500 Index rose 27.9%. That’s a major shift from the trend over the past five years, when hedge funds gained 10.7% while the S&P 500 was essentially flat.”

Despite lagging performance over the past three years, hedge funds outperformed the S&P 500 Index in the last three months of 2012, gaining 2.46% while the S&P 500 fell 1.0%. Hedge fund investors enjoyed a net 1.7% gain in December, besting a 0.7% rise in the S&P 500 Index for the month.

The Hedge Fund Flow Report also noted that stock-picking hedge fund managers had a good 2012 and a great December.

“Managers of Equity Long Only hedge funds found their groove in December, earning an impressive 4.8% and besting the S&P 500 by 406 bps,” Waksman said. Equity Long-Only funds earned 15.5% in 2012, the best performers among the 13 hedge funds categories tracked by BarclayHedge and TrimTabs. Fixed-Income hedge funds boasted the strongest 2012 inflows at $36.6 billion.

The January 2013 TrimTabs/BarclayHedge Survey of Hedge Fund Managers found widespread optimism about the U.S. economy and the short-term prospects for stocks in 2013. The survey found that bullishness on the S&P 500 surged to a 12-month high in January and that more than two-thirds of the survey’s 121 respondents see less than a 50/50 chance of a sharp correction in the S&P 500 in the first half of 2013.


The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The Survey of Hedge Fund Managers appears monthly, as does 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

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. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an