Thursday, 3 September 2015
Last updated 1 hour 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%.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…