GlobeOp: December Redemptions At Normal Levels

Dec 21 2011 | 2:12am ET

By almost all measures, 2011 has been a pretty miserable year for hedge funds. But while clients have, in recent months, shown decreasing patience with the asset class, they aren't storming for the doors as the year draws to a close.

December redemption requests are actually a tick lower than last year, despite the fact that the average hedge fund rose more than 10% in 2010 and is down about 4% this year. According to the GlobeOp Forward Redemption Indicator, hedge fund investors sought to pull 4.58% of industry assets this month, compared to 4.59% a year ago.

December's total was up from 3.44% in November and is the highest of the year, but that is nothing new for the industry, which generally sees its highest number of redemptions at the end of the year.

"The month-on-month increase is within the normal range of a seasonal pattern, as investors prepare to rebalance their portfolios at year end," GlobeOp CEO Hans Hufschmid said.


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Editor's Note