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Retained Profits Buoy Hedge Fund Industry Against Squall of Investor Redemptions Net redemption activity continued to hold sway over the hedge fund industry in April, as it has for 14 of the last 16 months dating back to January of 2022. Net redemptions totaled -$30.05 billion or -0.60% of industry assets. A $12.57 billion trading profit during the month left total hedge fund industry assets hovering around the $5.03 trillion mark as April ended.…
Investors Continue Trimming Positions in Hedge Funds and Systematic CTAs
While Risk Factors Proliferate, Markets Shrug Hedge fund industry redemptions continued in March from the prior month’s level with -$18.31 billion in net outflows, -0.37% of industry assets. A $30.68 billion trading profit during the month brought total hedge fund industry assets to $5.03 trillion as March ended.…
Redemption Pressure on Hedge Funds and CTAs Returns with a Vengeance in February
An Almost Universally Gainful January Brings Investors Back to a Resilient Hedge Fund Industry After gulping fresh lungfuls of air in January, many hedge fund managers found themselves pushed underwater again in February by the boots of exiting limited partners. Hedge fund investors extracted -$11.58 billion during the month, causing a -0.23% contraction of industry assets. An aggregate -$59.87 billion trading loss in February tamped down total industry assets to $4.99 trillion as the month ended.…
January’s Directional Trading Opportunities Shatter Many of 2022’s Established Patterns
An Almost Universally Gainful January Brings Investors Back to a Resilient Hedge Fund Industry After nearly a year of persistent monthly net outflows, the hedge fund industry reversed course in January as the industry posted $3.94 billion worth of net inflows, equivalent to about 8 basis points in asset growth, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions. A $151.82 billion trading profit in January brought total hedge fund industry assets back over the $5 trillion USD threshold to settle at $5.05 trillion.…
Persistent Position Trimming in 2022 Gives Managers Pause on New Launches
On Assets Industry Ends 2022 About Where It Started, Less Forward Momentum The global hedge fund industry experienced -$45.82 billion in net redemptions in December, equivalent to a -0.94% loss of industry assets. December’s outflows were up from -$20.05 billion in redemptions in November, and contributed to -$318.52 billion in total industry outflows since April 2022. A -$69.78 billion trading loss in December brought total hedge fund industry assets down to $4.84 trillion as the month ended.…
Redemption Trend Slows as Hedge Funds Profitable Again in November
Net Redemption Trend Remains Unbroken Through November 2022 Hedge fund net redemptions slowed somewhat in November to -$20.05 billion, or -0.42% of industry assets. November’s outflows followed -$52.97 billion in redemptions in October, and -$48.59 billion in September. It was a continuation of a trend that began in February that has cumulatively sapped more than $288 billion from the hedge fund industry. A $135.17 billion November trading profit brought total hedge fund industry assets to nearly $4.90 trillion as the month ended.…
Redemption Pressure Ratchets Up Worryingly for Hedge Funds and Systematic CTAs
Hedge Fund Outlook Gets Grim in October October redemptions from hedge funds outpaced subscriptions by -$52.97 billion, resulting in a -1.12% contraction of industry assets. This followed September’s net redemption figure of -$48.59 billion which was heretofore the largest net outflow for calendar year 2022. October’s outflows cap an unbroken trend of hedge fund redemptions dating back to February which has reclaimed nearly $268 billion from the industry A $71.03 billion trading profit during the month brought total hedge fund industry assets to more than $4.74 trillion as October ended.…
In Spite of Heavy September Redemptions, Q3 Net Outflows Materially Lower than Q2’s
CTAs Endure Worst Quarter of Investor Flight Since the Pandemic Began Hedge fund redemptions grew in September to -$48.59 billion (-0.98% of industry assets). September’s outflows follow net redemptions of -$18.93 billion in August and -$16.88 billion in July. In total, redemptions exceeded subscriptions in Q3 2022 by -$84.40 billion. This represents a modest slowdown from Q2’s redemption activity in which industry redemptions swamped subscriptions by -$92.08 billion. For the year to date interval, hedge funds have suffered an excess of -$203.75 billion redemptions over new subscriptions. A -$185.16 billion trading loss during the month brought total hedge fund industry assets to $4.71 trillion as September ended.…
Hedge Funds and Managed Futures Industries Both Perpetuate Redemption Trends in August
Redemptions from Hedge Funds Exceed Subscriptions for the Seventh Month in a Row The pace of Hedge Fund redemptions accelerated slightly in August to -$18.92 billion (-0.38% of industry assets). August’s outflows followed -$16.88 billion in net redemptions in July. Even with August’s slight increase, however, net redemptions remain in a slower trend than we observed in the late spring and early summer periods of 2022 in which April saw -$22.40 billion in excess redemptions; May booked -$27.53 billion; and June showed -$42.14 billion. A -$54.13 billion trading loss during the month brought total hedge fund industry assets to more than $4.96 trillion as August ended.…
Hedge Funds Ride the Swell in Equity Markets While Investors Get Circumspect on Redemptions
Most Regions See On-Going Hedge Fund Redemptions in July, but Trading Profit Boosts AUM Investors continued trimming their exposures to risk assets in July, albeit at a somewhat less frantic pace than we have observed over the prior four months. This manifested as slowing net redemptions from hedge funds in July to -$16.88 billion (-0.35% of industry assets). July’s outflows followed -$42.14 billion in June, -$27.53 billion in redemptions in May and -$22.40 billion in April. A $124.13 billion trading profit during the month helped to prop up total hedge fund industry assets to more than $4.99 trillion as July ended.…
Sustained Redemptions from Hedge Funds Make Visible Dent in 2022’s All Time AUM Record
Via Reinvested Profits and New Starts, CTA Industry Continues to Achieve New Heights The pace of hedge fund redemptions accelerated in June to -$42.14 billion, equivalent to a reduction of industry AUM of -0.83%. June’s outflows were up from -$27.53 billion in redemptions in May and -$22.40 billion in April. June marked the fifth month in a row in which redemptions outpaced subscriptions. Since February 2022, when the trend began, outflows have exceeded inflows by a combined -$130 billion USD. A -$173.10 billion trading loss in June brought total hedge fund industry assets to $4.87 trillion as the month ended.…
Most Hedge Fund Subsectors Lose Money and Investor Capital in May
Despite Recent Outperformance, Subscriptions to CTAs Apparently Slowing Hedge Fund redemptions accelerated slightly in May to -$27.53 billion (-0.54% of industry assets), up from -$22.40 billion a month earlier. A -$26.36 billion trading loss in May brought total Hedge Fund industry assets to $5.07 trillion as the month ended.…
Hedge Funds Experience Redemptions of $22 Billion in April
CTAs Continue to See Inflows Which Push Assets to New All-Time High of $380.59 Billion Hedge fund redemptions slowed somewhat in April though the trend continued. The month’s outflows totaled $22.40 billion, 0.44% of industry assets, a reduction from the $35.37 billion in outflows the industry experienced in March. A $131.83 billion trading loss during the month brought total hedge fund industry assets to nearly $5.11 trillion as April ended.…
Are Investors Finally Ready to Tap the Brakes on Their Hedge Fund Allocations?
Managed Futures Funds Continued Absorbing Investor Capital, Albeit at a Slower Rate Hedge fund net redemptions accelerated in March totaling -$35.37 billion, a reduction of -0.70% of industry assets. March’s outflows follow -$3.19 billion in redemptions in February. Nevertheless, a combination of new market entrants and an aggregate $18.24 billion trading gain for the month brought total industry assets to nearly $5.14 trillion as March ended.…
New Entrants Push Global Hedge Fund Industry Over $5 Trillion Threshold Despite February Shunting
Managed Futures Funds Suddenly Back in Vogue and in the Money The hedge fund industry was unable to build much momentum on January’s net inflows. February saw broad trading losses and redemptions that collectively led to marginal net outflows of -$3.19 billion and a reduction in industry assets of -0.07%. Nevertheless, BarclayHedge’s model indicated an increase in industry AUM to $5.04 trillion—a result driven by a significant number of funds coming online in the first months of the year. However, things looked very different in managed futures funds’ corner of the world in February. CTAs swung back to net inflows with net inflows totaling +$2.93 billion, increasing industry assets by nearly a percentage point. Moreover, industry inflows were buoyed by increasing interest in all four CTA subsectors.…
Hedge Funds Continue Winning Investor Favor, Raking in Another $11.29 Billion in January
January Investor Behavior Strikes Cautiously Optimistic Tone The hedge fund industry resumed attracting capital in January, scooping up $11.29 billion in new assets, good for an increase of 0.24% in total industry assets. A -$117.92 billion trading loss for the month left total industry assets at the $4.80 trillion mark as January closed. “End of year profit-taking, tax-harvesting and rebalancing in December 2021 broke an impressive nine-month run of net inflows to the hedge fund industry. Happily, January marked a return to net inflows, albeit in a somewhat more circumspect manner: Investors gave over an additional $11.29 billion to managers on the month,” observed Ben Crawford, Head of Research at BarclayHedge. “It is notable, however, that January 2022’s net inflows were less than 40% of the industry’s uptake a year ago and also well below the mean monthly inflow from 2021.”…
$39.8 Billion in December Profits Elevate Industry AUM to Record $4.80 Trillion
December Hedge Fund Outflows Merely Accentuate a Year of Spectacular Investor Interest After nine consecutive months of inflows, the hedge fund industry saw funds flow out of the sector in December with -$20.4 billion in net redemptions. December’s redemptions represented -0.44% of hedge fund industry assets. A $39.8 billion trading profit in December brought total industry assets to nearly $4.80 trillion at year end.…
Nine Consecutive Months of Positive Net Inflows Push Hedge Fund AUM to $4.69 Trillion Mark
Global Hedge Fund Assets Reach $4.69 Trillion in November as Most Regions See Inflows The hedge fund industry extended its monthly inflow streak to nine consecutive months in November bringing in $19.3 billion in new assets. November’s inflows represented 0.41% of hedge fund industry assets. With the addition of November’s inflows, the hedge fund industry has added $199.8 billion in new assets over the nine-month period. A trading loss of nearly -$40.0 billion during the month brought total industry assets to nearly $4.69 trillion as November ended.…
Rapid Rebound from September Losses Stokes Continuing Investor Interest in Hedge Funds
$4.66 Trillion Industry Rewarded with $26.5 Billion More to Manage The hedge fund industry posted inflows for an eighth consecutive month in October, attracting $26.5 billion in new assets, equivalent to a 0.59% jump in industry assets. Over the eight-month run, Hedge Funds have packed on a total of $180.5 billion in new AUM. $44.0 billion in monthly trading profits pushed total hedge fund industry assets to more than $4.66 trillion as October ended.…
