Banking Crisis
Hedge Fund Redemptions Of $43 Billion In September, More To Come – Report
US consultancy TrimTabs Investment Research, in its new Weekly
Flow Report, has estimated that investors reacting to poor
performance redeemed at least $43 billion from hedge funds in
September with more to come. But many hedge funds have reportedly
already liquidated sufficient holdings to fund current and
expected outflows.
TrimTabs said its preliminary estimates were based on a survey of
1,639 funds.
Chief executive Charles Biderman said: "Despite October's steep
sell-off, we do not believe the market has bottomed. While forced
hedge fund selling might be complete for now, equity mutual funds
are still experiencing major redemptions and corporate America is
not announcing new buying."
The report noted that hedge funds lost 19.9 per cent from June to
October, "the worst performance since our records began in
2000. We estimate 11 of 14 hedge fund sectors based upon
differing strategies posted outflows in September."
