Wed, Apr 8, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds redeem $8.9bn in June

Monday, August 20, 2018
Opalesque Industry Update - The Barclay Fund Flow Indicator saw redemptions from hedge funds hit a 20-month high in June, even amid worries over trade and interest rates.

Hedge fund industry assets remained at an all-time high of $3.0 trillion, though the financial markets weighed the risks of trade disputes and rising interest rates, says a press note from BarclayHedge.

According to the data drawn from more than 5,000 hedge funds in the BarclayHedge database estimated that the hedge fund industry (excluding CTAs) gave up $8.9 billion (-0.3% of assets) in June, reversing inflows of $4.0 billion (0.1% of assets) the month before.

June marked the largest outflow since October 2016.

The report quoted Sol Waksman, founder and president of BarclayHedge saying that the investors faced multiple uncertainties in June. "We had a strong U.S. unemployment report, but we also had more headlines about trade disputes and the prospect of higher interest rates in the months ahead. Economic ambiguities and hedge fund outflows often go hand in hand," he says.

Inspote of June's setback, industry assets climbed 3.7% year-to-date and surged 16.2% over the trailing 12 months, Waksman adds.

Fixed Income hedge funds saw the heaviest total inflows in the trailing 12 months ending in June, adding $24.2 billion (5.0% of assets). Equity market neutral funds had the strongest 12-month inflows as a percentage of assets ($15.3 billion, 20.7% of assets).

At the regional level, hedge funds focused on the U.S. and its offshore islands fared the worst in June, giving up $9.1 billion (-0.6% of assets) and reversing an inflow of $7.4 billion (0.5% of assets) the month before. "Turmoil over tariffs and other issues seems to have spooked these investors," Waksman said.

Demand for hedge funds focusing on the U.K. and its offshore islands turned negative in June. "U.K.-centered funds have seen a troubling turnabout," Waksman said. "Demand for U.K. funds flattened in the past two months, stalling the trend of the past 12 months, when they hauled in $70.5 billion (14.4% of assets)."

In the managed futures sector, commodity trading advisor (CTA) funds added assets in June, halting a four-month slide. Rising commodity prices worldwide have helped push CTA assets up 7.2% over the past 12 months.

"The return to asset growth in June looks like a vote of confidence in the CTA sector, which seemed unnerved by the persistent ascent of oil prices in the first half of 2018," Waksman said.

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. Investing: Ray Dalio's Bridgewater scales down European short bets after $3.2bn windfall, Here's what top hedge funds are buying in the coronavirus stock market crash[more]

    Ray Dalio's Bridgewater scales down European short bets after $3.2bn windfall From Financial News: Bridgewater Associates, the world's biggest hedge fund, has retreated from shorting European stocks after making an estimated €2.9bn ($3.2bn), as its founder and co-chairman Ray Dalio c

  2. Bill Ackman writes letter to shareholders on coronavirus[more]

    Pershing Square Holdings (PSH)'s Bill Ackman wrote a letter to investors outlining his insight on the coronavirus pandemic in the United States. He revealed that PSH completed the process of exiting the hedges on 23 March, netting a gross $2.1bn for PSH, after turning 'increasingly positive on equit

  3. New Launches: LGPS Central sets up investment grade bond fund, Leeds Equity Advisors aims to raise $1bn for PE fund, RLI Investors to launch European last-mile logistics fund, DBL Partners IV targets $450m[more]

    LGPS Central sets up investment grade bond fund From IPE: LGPS Central, the asset pooling vehicle for eight local government pension schemes (LGPS) based in England's Midlands, has launched a global investment grade corporate bond fund in order to meet its partner funds' needs. The po

  4. Investing: Marathon sees cheap assets amid dislocation in credit, Deerfield's health care buying spree, It's time to buy shares again, says BlackRock, Credit Suisse, Fed is buying credit ETFs but one hedge fund is shorting them[more]

    Marathon sees cheap assets amid dislocation in credit From Bloomberg: Distressed-investment specialist Marathon Asset Management is buying beaten-up debt amid the greatest dislocation in credit markets since 2008, according to Bruce Richards, co-founder and chief investment officer of the

  5. People: Carlyle picks 2 deputy heads for Japan buyout advisory team, Ex-Kleinwort Hambros adviser takes senior role at multi-family office boutique[more]

    Carlyle picks 2 deputy heads for Japan buyout advisory team From Takaomi Tomioka and Hiroyuki Otsuka were named deputy heads of the Japan buyout advisory team at Carlyle Group. The positions are new, confirmed a spokeswoman for the New York-based private markets investment g