Investors Redeem $4.9 Billion In June

Aug 8 2012 | 12:04pm ET

Investors pulled almost $5 billion from hedge funds in June, capping a 12-month period that has seen outflows of $32.1 billion.

The $4.9 billion outflow followed a May in which investors added $1.1 billion to hedge funds. Total industry assets dropped 1.3% to $1.71 trillion, according to BarclayHedge and TrimTabs Investment Research.

"The hedge fund industry can't seem to get out of the doldrums," BarclayHedge's Sol Waksman said. "Industry performance continues to lag popular benchmarks such as the S&P500, and asset growth has been flat for most of the past year."

Investors are pouring into eurozone hedge funds, hoping to profit from opportunities stemming from the continent's debt crisis. Inflows to such funds amounted to 3% of assets.

Funds of hedge funds, by contrast, continue to do terribly with investors; clients redeemed $8.7 billion from funds of funds last month, 1.7% of that industry's assets. June was the 13th month in the last 18 that funds of funds have suffered outflows.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of