Thursday, December 11, 2008
Funds with Shortest Redemptions Periods Post the Highest Outflows
The topical study from the December 2008 issue of The Hedge Fund Flow Report. Gain insight into industry trends and hedge fund asset flows before you make your next important decision.
Many market strategists blamed October’s late day sell-offs on hedge fund eleveraging. Though hedge funds sold equities to meet redemptions requests, those redemptions totaled $87 billion between September and October, against $128 billion from equity mutual funds. How do we reconcile these relatively low redemptions with unprecedented market volatility?
Due to long redemption terms, only a fraction of hedge funds returned cash to investors who redeemed in September and October.
We have seen only the tip of the iceberg in redemptions . .
Many market strategists blamed October’s late day sell-offs on hedge fund eleveraging. Though hedge funds sold equities to meet redemptions requests, those redemptions totaled $87 billion between September and October, against $128 billion from equity mutual funds. How do we reconcile these relatively low redemptions with unprecedented market volatility?
Due to long redemption terms, only a fraction of hedge funds returned cash to investors who redeemed in September and October.
We have seen only the tip of the iceberg in redemptions . .
Accredited investors can read the entire article for free.
From the December 2008 issue of The Hedge Fund Flow Report. The Hedge Fund Flow Report combines the accuracy of the BarclayHedge database with the analytical insight of TrimTabs Investment Research. The report is generated by TrimTabs Investment Research using the most current data on thousands of hedge funds. An annual subscription includes 12 monthly updates as well as a spreadsheet containing historical flow aggregates by category.
To download a free sample of the entire TrimTabs Hedge Fund Flow Report, simply fill out this short request form.
Labels: Hedge Fund Flow Topical Study, hedge funds
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