Monday, 28 July 2014
Last updated 2 days ago
Mar 11 2009 | 2:52am ET
Investors continued to pull money from hedge funds in February, as most hedge fund strategies lost ground in the year’s shortest month.
Hedge funds were hit by about $11 billion in redemptions last month, according to preliminary figures from Eurekahedge. The decline, while disappointing, are a mere drop in the bucket compared to the second half of 2008, when the industry shrank by $400 billion. February’s outflow was only about one-third the size of January’s.
Based on the 41% of the funds that have reported to Eurekahedge already, the firm estimates that hedge funds lost 0.5% on average in February, leaving the Eurekahedge Hedge Fund Index down 0.4% on the year.
Five of nine strategies tracked by Eurekahedge fell in February. Relative value funds lost 1.7%, long/short funds 1.2% and distressed debt funds 1.1%. Those in positive ground included macro funds, up 1%, multi-strategy funds, up 0.8%, and fixed-income funds, up 0.7%.
Regionally, Japanese hedge funds were the worst performers, losing 2.1% on average, with North American funds dropping 0.9% and Asian and European funds falling 0.7% each. Only Latin America funds were in the black, rising 0.7% in February.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…