The SS&C GlobeOp Forward Redemption Indicator for December is up marginally from last month.

Simply put, the SS&C GlobeOp Forward Redemption Indicator shows how much investors are looking to bail from their hedge fund investments. For December 2019, the indicator read 4.95%, up from 4.81% in November.

The indicator represents the sum of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp on the SS&C GlobeOp platform, divided by the Assets under Administration (AuA) at the beginning of the month for SS&C GlobeOp fund administration clients on the SS&C GlobeOp platform.

Headquartered in Windsor, Connecticut and with offices throughout North America, Europe, Asia, and Australia, SS&C (NASDAQ: SSNC) is a leading provider of services and software for the global financial services industry.

SS&C GlobeOp Forward Redemption Indicator: Trend

It’s interesting that with markets ruling at life highs, the Indicator is perched at a 12-month high.

Moreover, the December 2019 reading (4.95%) was up on both November 2019 (4.81%), and the same month last year (4.86%).

Are investors looking to take shelter in cash?

However, Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies, said: “Overall, redemption notices for the full year 2019 were similarly in line with recent years’ averages, continuing a trend in stable asset retention for hedge funds.”

Hedge funds saw some redemption relief in November

The hedge fund industry saw some relief in November after eight back-to-back months of aggregate outflows. This was the longest stretch of withdrawals since the 2008 financial crisis.

Investors have been pushing back on hedge funds due to their high fees and unimpressive performance.

Moreover, hedge fund closures have exceeded new fund launches for four consecutive years.

However, investors allocated +$4.45 billion to the industry, according to the November 2019 eVestment Hedge Fund Asset Flows Report. The turnaround in November brought overall hedge fund industry AUM to $3.285 trillion.

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