Wed, Apr 1, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund lose 3% of assets through outflows in 2019, much less than long equity

Thursday, January 23, 2020
Opalesque Industry Update - 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, according to the new eVestment report.

December 2019's outflows of -$16.21 billion capped off a tough year for the industry, which saw most fund-types and strategies in the red or essentially flat for December and/or for the full year.

However, the 2019 full-year hedge fund outflows of nearly -$100 billion represent less than 3% of total industry AUM. And to further put these figures in perspective, active long-only US equity strategies report about $7.1 trillion in AUM to eVestment, more than double the size of the hedge fund industry.

Through only Q3 in 2019 (the most current data eVestment has available for traditional strategies), this universe has seen redemptions of more than -$350 billion, over 5% of its AUM.

So while hedge fund redemptions have been elevated in 2019, according to the report, the hedge fund industry is not alone in feeling redemption pressure, nor is it near the top in terms flow amounts or percentages.

Among primary strategies tracked by eVestment, Long/Short Equity funds were the big asset losers in 2019, with investors pulling -$45.61 billion from these strategies. In December, investors pulled -$3.90 billion from Long/Short Equity strategies.

Coming in second for investor redemptions in 2019 among major strategies were Multi Strategy funds, which saw -$21.19 billion pulled by investors in 2019 (with -$7.68 billion pulled in December).

Macro funds were big asset winners among primary strategies in December, with investors adding +$3.87 billion, but these funds are still down -$18.42 billion for the year.

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. PE/VC: Unicorns sometimes sting, Private equity at crossroads as rout offers deals, curbs lending, S&P survey shows sagging prospects for private equity[more]

    Unicorns sometimes sting From PIonline.com: Venture capital firms are on a roll. Some 259 U.S. venture capital funds amassed $46.3 billion in 2019, the second highest by amount of capital raised and number of funds since 2006, according to the PitchBook-NVCA Venture Monitor. The biggest f

  2. Study: Three threats to hedge funds, Institutions seeing more private credit risks[more]

    Three threats to hedge funds From All About Alpha: A recent paper by a scholar at Tilburg University and a market participant at Robeco outlines the difficulties that the hedge fund industry has faced over the last decade. These problems arose, at least in part, from the democratization o

  3. Hedge fund Solus to close flagship investment vehicle[more]

    From FT: Solus Alternative Asset Management, one of the best known specialists in distressed investments, is closing its flagship fund after suffering a combination of heavy redemptions and poor performance. The hedge fund, which as recently as November managed $4.3bn in assets, is one of the fi

  4. Coronavirus 'possibly the biggest economic event of all our lifetimes', 'Big short' Michael Burry has a bearish bet and warns of a selling stampede, Investors' Black Death fear driving panic, says Witan Investment Trust chief Andrew Bell[more]

    Coronavirus 'possibly the biggest economic event of all our lifetimes' A former macro fund manager said on Thursday that the economic impact of the coronavirus - which is shaving trillions off the stock market and exerting a domino effect on the world economy - might be even worse than th

  5. Investing: As markets plunge, short sellers make hay, Time to buy, says GMO[more]

    As markets plunge, short sellers make hay From Institutional Investor: Short sellers floundered during the bull market. But as the market tides have turned, so too have their fortunes. "Some people haven't invested in hedge funds for a very long time," said Mark Roberts, owner of sh