(Valuewalk) The hedge fund industry is facing a difficult time. Q3 2016 flows were the industry’s fourth consecutive quarterly outflow, and monthly data, including redemptions in September, does not show many positive themes. Unlike prior periods of elevated redemption pressures, public financial markets are not clearly operating as if we are in the midst of, nor exiting a crisis period. This means the current flow trends are more emblematic of an industry in crisis.
For every highlight, one could find a flaw. Managed futures are experiencing a good run of inflows, but recent returns may cause that to stall. Commodities have been favored, but outflows returned in September.
