Friday, 28 April 2017
Last updated 5 hours ago
Apr 13 2017 | 11:22pm ET
Hedge funds gained again in March, according to new data from fund administrator SS&C GlobeOp, while the company’s asset flow indicator booked the most favorable April reading in the last ten years.
The company’s widely followed SS&C GlobeOp Hedge Fund Performance Index rose 0.30% in March after gains of 1.13% and 1.71% in February and January, respectively.
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 April reading of SS&C GlobeOp’s Capital Movement Index came in at 0.90%, twice the levels seen in February and March and a seasonally strong reading
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.
“The increase of 0.90% for SS&C GlobeOp’s Capital Movement Index for April 2017 is a very strong result, especially considering the month of April typically sees net outflows,” said Bill Stone, CEO of SS&C Technologies, in the statement. “For example, the 0.90% gain for the April 2017 compares to -1.18% a year ago for April 2016.
“In fact, April 2017 is the most favorable month of April for the Capital Movement Index in the past ten years,” Stone added. “If this strength in net flows can be sustained, it would be very favorable for the hedge fund industry.”
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.