“Flows into hedge funds are back to pre-crisis levels,” said Sol Waksman, CEO of BarclayHedge. “Nevertheless, the inflow of $54 billion in the latest four months reversed only a small portion of the redemptions of $402 billion from September 2008 through July 2009.”
In addition, funds of hedge funds took in $4.9 billion in November, their first significant inflow since March 2008.
“The liquidity constraints exposed in the 2008 meltdown forced funds of funds to reduce risk last year, and they missed most of the rally,” said Vincent Deluard, Global Equity Strategist at TrimTabs. “They will be under pressure to perform strongly to justify their lofty fees.”
In a research note, TrimTabs and BarclayHedge also calculated that hedge fund launches fell to a record low of 1.8% of hedge funds’ assets in 2009. The drop occurred because fewer funds were launched (10.4% of hedge fund count in 2009 versus 13.9% in 2008) and funds were launched with fewer assets (average assets of $452 million in 2009 versus $1.4 billion in 2008).
The TrimTabs/BarclayHedge database tracks hedge fund flows on a monthly basis. The TrimTabs/BarclayHedge Hedge Fund Flow Report provides detailed analysis of these flows as well as relevant topical studies. Click here for further information.
BarclayHedge is a leading hedge fund data vendor and one of the foremost sources for proprietary research in the field of alternative investments. From its origin as a research specialist and performance measurement firm, BarclayHedge has developed complete client services as a publisher, database and software provider, and industry consultant.
TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit us here.
CONTACT:
Sol Waksman
BarclayHedge
Phone: +1 (641) 472-3456
Fax: +1 (641) 472-9514
swaksman@barclayhedge.com
www.barclayhedge.com
Vincent Deluard
Global Equity Strategist
TrimTabs Investment Research
Phone: +1 (646) 512-5615
vincent.deluard@trimtabs.com
www.TrimTabs.com