SS&C GlobeOp Hedge Fund Performance Index Up 1.29% in December

Jan 13 2017 | 11:31pm ET

Hedge fund performance continued for the second straight month in December, according to new data from administrator SS&C GlobeOp, while asset flows declined.

The company’s widely followed SS&C GlobeOp Hedge Fund Performance Index gained +1.29% for the month, slightly lower than the +1.53% booked for November. For the full year, the measure’s gross return was +5.11%.

SS&C GlobeOp’s 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 January reading of SS&C GlobeOp’s Capital Movement Index, which measures hedge fund flows, dropped by -3.05% in December after gaining +0.24% and +0.73% in December and November, respectively.

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.

Higher outflows are typical in January, said SS&C CEO Bill Stone in a statement. "SS&C GlobeOp's Capital Movement Index for January 2017 was -3.05%, an improvement from the -3.28% reported a year ago for January 2016," Stone explained. "Capital flows in and out of hedge funds are very seasonal and the month of January typically sees the largest net outflows of the year. 

“Taking this seasonality into account, January 2017 was relatively favorable and, in fact, saw the lowest net outflows for any month of January in the past four years," he added.

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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