Wed, May 4, 2016
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 redeemed $5.1 Billion in April 2012

Tuesday, June 12, 2012

Charles Biderman
Opalesque Industry Update - BarclayHedge and TrimTabs Investment Research reported today that the hedge fund industry redeemed $5.1 billion (0.3% of assets) in April, reversing a $2.8 billion inflow in March. Based on data from 3,042 funds, the April TrimTabs/BarclayHedge Hedge Fund Flow Report estimated that industry assets stood at $1.7 trillion in April, up 1.6% for the first four months of 2012.

TrimTabs and BarclayHedge reported that more than $12.7 billion flowed out of the hedge fund industry between May 2011 and April 2012. There were net outflows in six of the 12 months. Thats a sharp contrast from the previous 12 months, when the industry saw a net inflow of $90.7 billion and just three monthly outflows, said Sol Waksman, founder and president of BarclayHedge.

Hedge funds lost 0.59% in April, besting the S&P 500s April loss of 0.75%, but the industry trailed the popular financial industry benchmark for the first four months of 2012, returning 5.0% vs. a 11.2% gain for S&P 500, TrimTabs and BarclayHedge reported. Aprils results marked the first time in six months that the industry outperformed the S&P 500, Waksman said.

Over the past 12 months, Fixed Income, Multi-Strategy and Macro funds represented the most popular strategies of hedge fund investors, attracting the largest cash inflows among 13 fund categories tracked by TrimTabs and BarclayHedge. With interest rates near zero and central bankers flooding the markets with liquidity, Fixed-Income investors are chasing any yield they can get, said Charles Biderman, founder and CEO of TrimTabs. Emerging Market and Equity Long Bias funds posted the highest outflows over the same time period.

Meanwhile, the May 2012 TrimTabs/BarclayHedge Survey of Hedge Fund Managers found that 35.6% of managers were bearish on the S&P 500 for June, while 30.5% were bullish, and 33.9% were neutral. Conducted in late May, the survey of 120 hedge fund managers found bearishness on the S&P 500 at a six-month high and bullishness at an eight-month low.

In the survey, bullish sentiment on the U.S. Dollar Index surged to 61.9% in May from 35.4 in April, a 15-month high. Managers are responding to seemingly never-ending anxiety over Eurozone sovereign debt, which is punishing the euro and bolstering demand for the greenback, said Leon Mirochnik, a financial analyst at TrimTabs.

When asked about the likelihood of the Federal Reserve launching another round of quantitative easing this year, over 28% of managers saw more than a 60% chance of that happening, while over 47% of managers saw less than a 40% likelihood.

Press release

bc

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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n