SS&C GlobeOp Hedge Fund Performance Index Falls 0.54% in June

Jul 14 2016 | 7:17pm ET

Hedge fund returns slipped in June after three straight months of gains, according to new data from administrator SS&C GlobeOp, while asset flows tipped negative.

The company’s widely followed SS&C GlobeOp Hedge Fund Performance Index fell -0.54% (gross) in June, following gains of 1.26% in May.

The asset-weighted index flashes a monthly estimate of the gross aggregate performance of funds for which SS&C GlobeOp provides monthly administration services on its platform.

Meanwhile, the July reading of SS&C GlobeOp’s Capital Movement Index, which measures hedge fund flows, declined -2.24% after being essentially flat in June. Similar to its performance-focused counterpart, the index tracks monthly net hedge fund subscriptions and redemptions administered by SS&C GlobeOp on the company’s platform, divided by the total assets under administration.

 Despite concerns that the decline in the Capital Movement Index was related to the U.K. Brexit referendum, seasonality is the more likely cause, according to the company. “SS&C GlobeOp’s Capital Movement Index for July 2016 came in at -2.24%, in line with normal seasonal patterns, and a year-over-year improvement compared to -2.96% for July 2015, ” said Bill Stone, Chairman and CEO of SS&C Technologies. 

July and January typically see the greatest declines in the index, due in part to the redemption procedures of many hedge funds. 

“This improvement was due to lower outflows vs. a year ago, which outweighed slightly smaller inflows,” Stone added. 

SS&C GlobeOp’s total assets under administration on the SS&C GlobeOp platform represent approximately 10% of the estimated assets currently invested in the hedge fund sector. Founded in 1986, the Windsor, CT-based firm provides investment and financial software-enabled services and software focused exclusively on the global financial services industry, providing services to more than 10,000 financial services organizations managing an aggregate $44 trillion in assets.

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