Thursday, 24 July 2014
Last updated 23 min ago
Dec 13 2011 | 1:18pm ET
Investors pulled more from hedge funds than they have in more than two years in October, halting the industry's rise towards its pre-financial crisis asset level.
Clients redeemed some $9 billion in October, nearly three-and-a-half times as much as they pulled in September, according to BarclayHedge and TrimTabs Investment Research. The redemptions are the largest for the hedge fund industry since July 2009, when $17.8 billion was returned.
"Investors seem to have lost patience with lackluster hedge fund returns," BarclayHedge's Sol Waksman said.
It certainly took them long enough: Hedge funds have been down for most of the year, despite an uptick in October. The average hedge fund is down by about 4% this year, according to several industry indices.
October's redemptions cut the global hedge fund industry's size to $1.66 trillion, its lowest level in almost two years.
Long/short hedge funds, among the hardest-hit in terms of performance, took the biggest hit in terms of assets, with $2.6 billion in redemptions. Macro funds suffered $1.8 billion in redemptions while emerging markets funds lost $1.6 billion.
By contrast, multi-strategy funds brought in $1 billion in new capital.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…