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Alternative Market Briefing

Opalesque Roundup: Investors redeem more from active long only than hedge funds: hedge fund news, week 04

Monday, January 27, 2020

The global hedge fund industry saw outflows of -$97.93 billion in 2019, according to the just-released December/Year-End 2019 eVestment Hedge Fund Asset Flows report.

Despite these redemptions, total hedge fund industry AUM rose past $3.3 trillion at the end of the year due to performance gains. While hedge fund outflows represent less than 3% of total industry AUM, active long-only US equity strategies (according to Q3 data, the most current data eVestment has available for traditional strategies) have suffered redemptions of more than -$350 billion, over 5% of its AUM. So while hedge fund redemptions have been elevated in 2019, according to these numbers the hedge fund industry is not alone in feeling redemption pressure, nor is it near the top in terms flow amounts or percentages.

Eurekahedge said the global hedge fund industry AUM has increased by US$9.9 billion in 2019. Investor redemptions totaling US$126.2 billion have been recorded throughout the year, a level the industry has not seen post-crisis. The Eurekahedge Hedge Fund Index returned 8.74% in 2019, supported by the risk-on sentiment among investors and positive geopolitical developments throughout the year.

In new launches, New York-based banking institution Citi has ......................

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