Man's Ellis Expects Industry Redemptions

Oct 25 2011 | 11:45am ET

Despite the difficulties faced by hedge funds in recent months, investors have stuck by them, even adding cash at a time when returns are suffering.

That could be changing, according to one top industry executive.

Hedge funds will likely suffer net redemptions in the fourth quarter, the Man Group's Luke Ellis said. "There will be a lot of people feeling uncomfortable about performance over the last six months," he explained.

"A lot of people are trying to work out what to do for year-end," Ellis added. "I'd expect you'd see net redemptions from the average hedge fund over the fourth quarter."

Ellis, who handles Man's multi-manager business, said that those outflows could be reversed early next year—although he isn't holding his breath.

"You could see outflows at the end of October and November, and then a whole bunch of inflows on 1 January," he said. "That's entirely credible, depending on what happens. But you might not see the inflows."


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.