Hedge Fund Redemptions Rise In May

May 23 2011 | 10:44am ET

Hedge fund forward redemptions were up slightly in May 2011, but the change—from 2.45% in April to 3.92% this month—is not necessarily significant, according to GlobeOp Financial Services.

“Although the [GlobeOp Forward Redemption] indicator increased in May there is no reason to believe that this signals a change in investor sentiment,” said Hans Hufschmid, GlobeOp CEO.

May forward redemptions represent the highest level so far this year but are lower than the peak of 4.59% seen in December 2010. Forward redemptions are requests from investors to withdraw an investment in the hedge fund.

GlobeOp’s data represents approximately 8-10% of the hedge fund industry, that is, funds with total assets under administration of $167 billion.

The GlobeOp Forward Redemption Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by GlobeOp, divided by assets under administration at the beginning of the month.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...