Hedge fund redemptions “not insignificant”

Investors pulled out $5.2 billion (€4.9 billion) from hedge funds in January 2017 – a not insignificant sum, according to an analyst, but much lower than redemptions this time a year ago.

eVestment, which monitors hedge fund flows, said: “And while $5 billion is not insignificant, it pales in comparison to the $19.3 billion investors pulled from hedge funds in January 2016, meaning investors may be starting 2017 with a positive view of these funds following some strong 2016 performances.”

Overall hedge fund industry assets under management in January stood at $3.033 trillion and 49% of hedge fund managers reported positive inflows during the month, eVestment’s Peter Laurelli, global head of research, said.

The largest redemptions in January came from managed futures funds, with outflows of $3.67 billion. This brings managed futures outflows for the past three months to $13.19 billion.

Managed futures funds are sometimes grouped with “trend followers” and commodity trading advisers, and the sector’s performance had a relatively poor start to the year, other data showed recently.

©2017 funds europe

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