Tremont: Global Macro, Emerging Mkts. Hold Ground

Feb 10 2006 | 9:49pm ET

Tremont Capital Management released figures this week showing a $4.3 billion net outflow from hedge funds for the fourth quarter 2005. Despite the net effect, some positive components existed, with global macro and emerging markets investment strategies drawing substantial amounts of investment. Overall, the asset flow report showed that the global macro, emerging markets and dedicated short bias strategies saw inflows of $1.2 billion, $600 million and $30 million, respectively.

Robert Schulman, chief executive officer of Tremont, is not worried about the fourth quarter net outflows, believing they reflect a relatively consistent pattern of annual rebalancing in hedge fund portfolios. He said that in many instances in the last quarter of the year, withdrawals correspond to subscriptions in other strategies or funds.

"When you look at fourth quarter results for each of the last 12 years," said Schulman, "11 of those quarters were followed by larger flows in the following first quarter. This is characteristic in the hedge fund industry where, in the rebalancing process of redemptions and subscriptions, the subscription component is not reported until the first day of the following quarter." 


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR