•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Bailey McCann, Opalesque New York:

Global hedge fund assets dropped below $3 trillion again – to $2.99 trillion – as investors withdrew $20.7 billion from the industry, according to the June eVestment Hedge Fund Asset Flows report. June redemptions were the largest June since eVestment began tracking monthly flows in 2009.

Long/short equity strategies had the largest aggregate redemptions in June. Performance declines in H1 are likely the primary reason for the elevated outflows.

For the second consecutive month, funds domiciled in Europe experienced elevated redemption pressure. Also for the second consecutive month, the majority of redemptions came from firms located in the UK and from within long/short equity and large managed futures funds.

Asian funds are also under continued redemption pressure. In all, nearly every strategy is seeing redemptions except CTAs. CTA funds have seen their ninth consecutive month of inflows following recent positive performance.

"What made redemptions from the industry in June different than all other months of 2016 was that it was the first month of 2016 when large funds that performed well in 2015 had aggregate redemptions. This is an indication that as redemption pressures from poor 2015 performance appeared to abate in April and May, negative sentiment related to 2016 performance may be rising," wrote report author Peter Laurelli, eVestment’s vice president and global head of research.......................

To view our full article Click here