Investors Pull $7B From Hedge Funds In July

Sep 11 2012 | 10:16am ET

Investors pulled $7.4 billion out of hedge funds in July after reclaiming $4.2 billion in June, according to the latest numbers from BarclayHedge and TrimTabs.

Based on data from 3,119 funds, the TrimTabs/BarclayHedge Hedge Fund Flow Report estimated that industry assets were $1.87 trillion in July, down 23.2% from their June 2008 peak of $2.4 trillion.

“We've seen a notable reversal in hedge fund industry fortunes during the past year,” said Sol Waksman, founder and president of BarclayHedge. “The industry experienced outflows in seven of the 12 months from August 2011 to July 2012, losing a net $29.3 billion. From August 2010 to July 2011, the industry gained $96.2 billion with inflows in 10 out of 12 months.”

The research firms also track fund performance and found that only macro funds outperformed the S&P 500 in July, adding 1.5% (to the stock index’s 1.26%).

Fixed-income, one of the best performing strategies over the past year, ended up mid-pack in July, returning 0.8% (and seeing outflows of $188 million).

In regional terms, Continental Europe funds had the highest July returns at 1.3%, but still experienced outflows worth 3.3% of assets.

According to the August 2012 TrimTabs/BarclayHedge Survey of Hedge Fund Managers, sentiment is evenly divided between neutral and bullish on the performance of the S&P 500 for September. 

 


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