Tuesday, February 9, 2010
Hedge Funds Post Outflow of $3.8 Billion in December; Hedge Fund Assets Hit 12-Month High of $1.5 Trillion
New York, NY – February 9, 2010 – TrimTabs Investment Research and BarclayHedge reported that all hedge funds posted an estimated outflow of $3.8 billion in December 2009. December’s outflow is the industry’s first since July 2009. At the same time, hedge fund assets grew to a 12-month high of $1.5 trillion thanks to an unprecedented 10-month winning streak.
“December’s relatively small outflow is almost certainly seasonal, a product of quarter-end and year-end redemptions,” said Sol Waksman, CEO of BarclayHedge. “Hedge funds experienced outflows in December in each of the past five years, and we suspect inflows have already resumed.”
In addition, funds of hedge funds posted an estimated outflow of $6.3 billion in December, bringing redemptions for all of 2009 to $180.9 billion. Funds of funds returned only 10.24% in 2009, less than half of the industry’s average 23.9% gain. “Funds of hedge funds turned extremely risk-averse after the late 2008 sell-off,” said Vincent Deluard, Global Equity Strategist at TrimTabs. “Their conservative strategy allocation and large cash balances hurt their returns during this rebound.”
Read the entire TrimTabs Asset Flows into Hedge Funds Press Release by clicking here.
Copyright © 2010 by Barclay Hedge
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