Alt Investments
Investors Hit The Exits From Hedge Funds In December, 2013, But Sector Generally Robust - Data
BarclayHedge and TrimTabs Investment Research have reported that hedge funds experienced their biggest outflow of 2013 in December, redeeming $10.4 billion, equivalent to 0.5 per cent of all assets.
BarclayHedge and TrimTabs Investment Research have reported that hedge funds experienced their biggest outflow of 2013 in December, redeeming $10.4 billion, equivalent to 0.5 per cent of all assets, while last year’s gains lagged those of conventional listed US stocks. As a whole, the sector enjoyed stronger asset growth in 2013.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report noted
that the hedge fund industry gained 1.1 per cent in December,
lagging the S&P 500 index of US equities, which rose by 2.5
per cent. For the year, the industry returned 11.3 per cent,
while the S&P 500 gained 32.4 per cent.
“The hedge fund industry took in a three-year high of $56.5
billion in 2013, a strong turnaround from 2012, when the industry
shed $28.9 billion,” said Sol Waksman, president and founder of
BarclayHedge.
Hedge funds, which typically charge a performance fee as well as
annual management charge, have hit headwinds in recent years, as
the huge spike in market volatility hit returns. Priding
themselves on an ability to deliver absolute returns in all
weathers, the hedge fund industry in general suffered in 2008,
albeit not as much as the conventional equity market.
“Industry assets climbed to a five-year high of $2.2 trillion in
December from $2.1 trillion in November, according to estimates
based on data from 3,372 funds. Assets rose 19.9 per cent
last year but were down 11.6 per cent from the all-time high of
$2.4 trillion in June 2008,” Waksman said.
The report noted that funds of hedge funds redeemed $6.8 billion
(1.4 per cent of assets) in December, reversing November’s inflow
of $1.9 billion.
