Thu, Jan 28, 2021
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds see $2.8b in redemptions in September, snapping three-month inflow streak

Monday, November 23, 2020
Opalesque Industry Update - Hedge fund industry flows reversed course in September 2020 as the industry's $2.8 billion in redemptions ended a three-month inflow trend. The industry had brought in $5.6 billion in new assets in August.

September's outflows represented 0.1% of industry assets, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions.

With the addition of a $15.6 billion trading loss in September, total hedge fund industry assets stood at more than $3.38 trillion as the month ended, up from $3.36 trillion at the end of August.

Data from 6,900 funds (excluding CTAs) in the BarclayHedge database showed Sector Specific funds leading the way in September, bringing in $2.3 billion, while Emerging Markets - Global funds added $1.6 billion.

"COVID-19 case numbers spiked in many regions and countries over the summer, while week after week brought reports of more than a million U.S. workers filing first-time unemployment claims," said Sol Waksman, president of BarclayHedge. "Couple that with a Fed warning that the surging pandemic was beginning to hurt economic recovery and other indicators like a downward revision in oil demand forecasts and many hedge fund investors decided to look elsewhere in September."

Over the 12-month period through September, the hedge fund industry experienced $122.2 billion in redemptions. A $60.4 billion trading profit over the period contributed to the total industry assets of more than $3.38 trillion at the end of the month, up from $3.05 trillion a year earlier.

Six hedge fund sectors posted 12-month inflows through September. Sector Specific funds led the way with $25.8 billion in 12-month inflows, 15.1% of assets, followed by Event Driven funds with $9.0 billion, 5.3% of assets, Convertible Arbitrage funds with $3.7 billion, 17.9% of assets, Balanced (Stocks & Bonds) funds with $3.1 billion, 1.0% of assets, and Emerging Markets - Latin America funds with $736.1 million, 6.5% of assets. New to the group in September was Emerging Markets - Asia funds, adding $461.8 million, 0.4% of assets.

Hedge fund sectors with the largest 12-month redemptions included Fixed Income funds shedding $34.7 billion, 5.4% of assets, Equity Long/Short funds with $31.0 billion in redemptions, 15.8% of assets, Equity Long Bias funds experiencing $19.3 billion in outflows, 5.7% of assets, and Macro funds shedding $18.0 billion, 9.2% of assets.

Managed futures funds saw a third consecutive month of industry inflows in September, bringing in $1.0 billion in new assets with two of four sectors tracked - Systematic CTAs ($918.0 million, 0.3% of assets) and Discretionary CTAs ($124.7 million, 1.1% of assets) - adding to assets for the month. The industry experienced a $3.0 billion trading loss for the month, taking total industry assets to $303.6 billion as September ended, down from $304.9 billion in August.

For the 12-months through September, CTAs experienced $5.4 billion in redemptions, 1.7% of assets. A $16.0 billion trading loss over the period contributed to the $303.6 billion industry asset total at the end of September, down from $308.4 billion a year earlier.

Press release

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. Institutional Investors: Pensions swamped in a sea of negative real rates, Bahrain's pension fund authority faces collapse[more]

    Pensions swamped in a sea of negative real rates From FA Mag: Defined-benefit pension plans were already barely treading water heading into 2020. In the years ahead, the risk is as great as ever that a large swath of them will drown. As the name implies, defined-benefit pensions promis

  2. New Launches: Lesser-known Tiger Seed launches long-only fund, Bill Gates-led fund raises another $1bn to invest in clean tech, Claret Capital strikes initial close for first fund since spinout from Harbert[more]

    Lesser-known Tiger Seed launches long-only fund From Institutional Investor: A hedge fund whose largest investor is Julian Robinson Jr.'s Tiger Management has launched a long-only fund as part of a larger reshuffling of its investment vehicles. Tiger Legatus Capital Management, a so-ca

  3. Opinion: Hedge-fund tycoon Seth Klarman says investors are like frogs slowly boiling in a pot, Bridgewater's CEO on inequality, uncertainty, and polarization[more]

    Hedge-fund tycoon Seth Klarman says investors are like frogs slowly boiling in a pot From NY Post: If you start to feel warm - with a sudden urge to hop out of the stock market - there might be a reason for that. A prominent hedge-fund tycoon said investors are like frogs who are gett

  4. PE/VC: Venture capital takes off: How the lines between VC and PE are blurring, Global venture capital clusters in fewer firms, Bumper year for UK private equity as deals soar 257%[more]

    Venture capital takes off: How the lines between VC and PE are blurring From PE News: As 2020 came to an end, Ian Connatty, managing director of British Patient Capital (BPC), had good reason to feel satisfied with the progress of the organisation that he helped set up in 2018. In

  5. Investing: Short-squeezed hedge funds are now getting hit on their bullish bets too, Hedge funds and data companies are closely tracking the infamous WallStreetBets Reddit forum, , Solar stocks propel Asia hedge funds to supersized gains, Evotec shares rise amid speculation Melvin Capital closing short positions[more]

    Short-squeezed hedge funds are now getting hit on their bullish bets too From Bloomberg: With a full-blown retail raid targeting their short books, many of the stocks hedge funds are bullish on are suddenly in trouble, too. That has prompted the industry to cut their risk appetite at the