Saturday, 27 December 2014
Last updated 3 days ago
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%.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.