Hedge Funds Hit With Biggest Net Outflow Since '09

Jan 14 2014 | 12:24pm ET

Investors fled from hedge funds en masse last month, with the industry suffering its biggest net redemptions since the height of the financial crisis.

The SS&C GlobeOp Capital Movement Index, which measures net hedge fund subscriptions or redemptions, fell 3.56% in December. The reading was the index's worst since September 2009.

December's withdrawals all but wiped out last year's net inflow into hedge funds; the SS&C index rose just 0.16% last year.

December frequently sees a large outflow from hedge funds, as investors move to rebalance their portfolios. But last month's redemptions were much higher than December 2012's: A year ago, the index dropped just 2.61%.

The increased redemptions could be due to hedge funds' massive underperformance last year. The SS&C GlobeOp Hedge Fund Performance Index rose only 12.32% last year after adding 0.72% in December. The Standard & Poor's 500 Index soared 30%, and the MSCI World Index about 24%.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

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

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of