Saturday, 27 December 2014
Last updated 3 days 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.
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.