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

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.