Monday, 22 December 2014
Last updated 47 min ago
Jan 21 2009 | 4:24pm ET
Two years’ worth of growth in the hedge fund industry was obliterated last year as investors fled, saddling the already hard-hit asset class with the biggest outflow in history.
Hedge funds managed just $1.4 trillion on New Years Day, a 27% decline from the middle of last year, when the industry peaked at $1.93 trillion, Hedge Fund Research reports. Of the vanished $525 billion, record investor redemptions in the fourth quarter were responsible for $152 billion of the lost assets. All told, 2008 outflows totaled $155 billion, only the second time ever that the hedge fund industry has contracted since at least 1990.
“Investor risk aversion remained at historically extreme levels through year-end, even as implied and realized asset volatility moderated,” Kenneth Heinz, president of HFR, said.
The top 10% of hedge funds in the HFRI index returned an average of 40% last year, while the bottom 10% lost an average of 62%. But investors did not discriminate in running for the exits. Macro funds were one of the few to enjoy a relatively strong year, but investors still pulled $31 billion from the strategy. Short-biased funds and systematic diversified strategies posted double-digit returns, but still investors took their money and went home.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.