Tuesday, 30 June 2015
Last updated 5 hours ago
Nov 13 2008 | 12:23pm ET
Hedge funds coffers were a little lighter last quarter thanks to negative performance, huge redemptions and forced liquidations.
According to HedgeFund.net, total assets in single manager funds fell 16% in the third quarter to $2.497 trillion. Performance losses accounted for $347.5 billion of the missing assets, while investor redemptions and liquidations accounted for an additional $128 billion. Investor redemptions alone accounted for an estimated $117.3 billion outflow, by far the largest on record.
Specifically, corporate bond strategies dropped an estimated $294.6 billion last quarter; long/short equity hedge fund assets fell an estimated $147.8 billion, emerging markets-dedicated hedge fund assets fell an estimated $84.3 billion and distressed investing strategies saw total assets fall an estimated $62.8 billion. Through the first three quarters of 2008, investors have actually added an estimated $11 billion more than they have withdrawn from distressed investing hedge fund strategies.
Fund of hedge funds also experienced a contraction in third quarter 2008, dropping $134.5 billion in performance losses, $75.7 billion in investor redemptions and $4.3 billion in net liquidations. All told, total funds of funds assets fell 14.9% to an estimated $1.224 trillion, the first ever-quarterly reduction in funds of funds FoF assets on record.
Early October estimates show the HFN Hedge Fund Aggregate Average, an equal-weighted benchmark of all single-manager hedge funds and managed futures products in the HedgeFund.net database, was down 3.85% in October and down 12.44% YTD.
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…