Hedge Fund Redemptions Continue To Slow In March

Apr 14 2009 | 10:02am ET

Redemptions from hedge funds continued to fall in March, which outflows just a fraction of those suffered during the record-setting months of December and January.

Net investor redemptions and liquidations last month were $24 billion, according to HedgeFund.net. It is the third consecutive month that redemptions have slowed since peaking in December at $184.1 billion.

Hedge funds’ broadly positive performance in March helped blunt those losses further: The HFN Hedge Fund Aggregate Average rose 1.84% last month (0.52% for the quarter), earning the industry $6.4 billion in performance gains in March. All told, total hedge fund assets fell just 1.01% last month to $1.724 trillion in March.

That said, the industry is still 10.8% smaller today than it was at the beginning of the year, and 41% smaller than at its peak in June. Much of that decline can be blamed on funds of hedge funds, according to HFN, which made up a disproportionate number of fund closures. While funds of funds account for just 35% of HFN’s database, they made up 49% of recent closures.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of