September Hedge Fund Redemptions Continue into Fourth Straight Month

November 22, 2019 | Hedge Funds, Investments, News

Investors pulled net $14.7 billion from HFs in September.

Hedge fund redemptions continued for the fourth straight month in September. BarclayHedge says that investors’ redemptions hit net $14.7 billion in September. The figure comprised 0.5% of total hedge fund assets.

The Barclay Fund Flow Indicator shows that total hedge fund assets stood at $3.05 trillion at the end of the month. This figure includes the $9.1 billion in profit earned by hedge funds in September.

The group says that ongoing economic worries fueled the outflows during the month. The United States, Europe, United Kingdom, and China all experienced outflows in September. The U.S. hedge funds saw redemptions totaling $1.3 billion for the period.

Reactions to Hedge Fund Redemptions in September

Meanwhile, in a press release, Sol Waksman, president of BarclayHedge, discussed the narrative around the redemptions.

“The story of the summer seemed to be that every positive bit of economic news was offset by a worrisome report or event,” said Waksman. “Equity markets were buoyed by anticipation of a Fed rate cut one day, then rattled by fears of heightened US-China trade tensions the next. Brexit uncertainty may have become a familiar refrain, but familiarity makes it no less a concern for UK hedge fund investors. Meanwhile, manufacturing downturns in the US, China, the U.K., and the Eurozone prompted concerns about a slowing global economy.”

Related: eVestment: August 2019 Redemptions Top $6.5 Billion

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