Sunday, 29 November 2015
Last updated 1 day ago
Apr 23 2009 | 7:43am ET
Redemptions from hedge funds slowed in the first quarter, but those from funds of funds soared, according to Hedge Fund Research.
Investors pulled almost $103 billion from hedge funds in the first three months of the year, shrinking the industry by another 7.3%. But withdrawals are down by almost one-third from the fourth quarter of last year, when investors redeemed a record $152 billion. Equity hedge funds were hardest hit, with $35 billion in redemptions, while two strategies that actually enjoyed strong returns last quarter and last year, respectively, also losing assets. Relative value funds filled $27 billion in redemptions, while macro strategies lost $16 billion.
But the slowing redemptions industry-wide are cold comfort to funds of funds, which saw withdrawals soar 70% from the fourth quarter’s total of $50 billion to $85 billion over the last three months, the overwhelming majority of all hedge fund redemptions on the quarter.
Performance gains in the first quarter helped partially offset the declines: the HFRI Fund Weighted Composite Index returned 0.53%, earning hedge funds some $28 billion in performance gains. Still, the industry is 30% smaller than it was at its peak in June of last year, and now manages $1.33 trillion, according to HFR.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…