Tuesday, 23 September 2014
Last updated 11 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 Through the first three quarters of 2008, investors have actually added an estimated $11 billion more than they have withdrawn from distressed investing hedge fund strategies.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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.