Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Zawya.com – Hedge fund liquidations fell by 50 per cent in the first quarter of 2009 from the record levels set in the previuos quarter, according to data released yesterday by Hedge Fund Research (HFR), a leading provider of the industry data.
New fund launches accelerated during the first quarter, with approximately 150 funds entering the market, the highest rate of new introductions since the 2008 second quarter.
Zawya.com – The worst may be over for hedge funds with redemptions recording a decline for the third consecutive month in March and industry players expecting stability to return soon.
Net investor redemptions and liquidations in March were an estimated $23.97 billion (Dh87.7bn) compared to investor outflows of $41.14bn in February and $165.25bn in January this year, Hedgefunds.net said in its latest report.
Estimates show hedge fund assets fell an additional 1.01 per cent in March 2009 to $1.724 trillion compared to reductions of 2.51 per cent in February and 7.56 per cent in January 2009.
West Palm Beach (HedgeCo.net) – The top 10 hedge fund adminstraators reported $1.64 trillion in hedge fund assets under administration (AuA) in the Q4 2008, according to HFN, with Citco Fund Services, State Street Alternative Investment Solutions and Goldman Sachs Administration Services taking the top three positions.
HFN also released early estimates for February hedge fund asset flows which indicate the outflow from the industry continued during the month, but at a much slower rate than prior months. Early estimates show hedge fund assets fell an additional 2.2% in February 2009 to $1.746 trillion compared to a reduction of 7.6% in January 09.
The drop was largely due to net investor redemptions and fund liquidations of $35.9 billion during the month and combined with a reduction due to performance losses of $3.53 billion. Early estimates have the HFN Hedge Fund Aggregate Average -0.61% for February, but this figure will likely go lower as more funds report.
Taking into account internal estimates of where month end performance will likely settle, February 2009 should go down as the 5th highest level of hedge fund outperformance over equity markets in the last twenty years.
The Q4 2008 HFN Administrator Survey contains information on hedge fund and fund of funds assets under administration (AuA) from 60 administrators. Results detail total reported AuA, regional concentration, growth rates and top ten lists for more than 20 criteria.
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds
New York (HedgeCo.Net) – Although hedge funds finished up 2008 with some of the worst numbers to date, they showed some signs of promise in December. According to the latest research by the Hennessee Group LLC, a New York-based advisor to hedge fund investors, hedge funds advanced .51 percent in December.
Hedge funds finished up the year down 19.15 percent according to the research. Although it was a dismal year for funds as a whole, they still outperformed the S & P, which was down 38.5 percent on the year, the Dow Jones, who dropped almost 34 percent, and the NASDAQ Composite Index, which posted a 40 percent drop on the year.
One challenge for hedge funds in 2008 was the record number of redemption requests brought on by clients. Large hedge funds such as Citadel, Harbinger and Cerberus, along with about 80 others, had to put some form of restrictions on client withdrawals.
“Year-end redemptions were significant, as the average fund returned 15% to 25% of investors’ assets. Combined with negative performance and complete liquidations, the entire hedge fund industry started 2009 at close to 50% of the capital it was at the beginning of 2008,” said Charles Gradante, Co-Founder of the Hennessee Group. “However, this should be a positive for funds as less capital will be chasing the same long/short trades, which should lead to better returns.”
The Hennessee Long/Short Equity Index saw a .31 percent advance in December, while the year to date was down over 18 percent. The Global/Macro Index rose .61 percent in December, although taking an almost 21 percent hit for the year. The Arbitrage/Event Driven Index, which was down 18.5 percent on the year, advanced 1 percent in December.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
Money Morning – Hedge funds looking to slash their use of borrowed money may have to unload another $200 billion in assets to reach their objectives, a new study found, though a Money Morning expert believes the exit door could get pretty narrow should the holiday shopping season get off to a rocky start later this week.
Investors yanked $40 billion from the $1.5 trillion hedge fund industry in October, a month in which market losses slashed industry assets by an additional $115 billion, Hedge Fund Research Inc., reported. A new survey of hedge fund managers conducted by Sanford C. Bernstein & Co. LLC found that 63% said the sale of assets to cut leverage was at least half completed. Another 23% said the process was three-quarters complete.
Reuters – The days of hedge funds as a red-hot asset class may be cooling, according to a new survey released by fund research firm Morningstar on Monday.
Nearly half of all financial advisers who help wealthy people invest their money said they expect hedge funds to become somewhat less or much less important in clients’ portfolios in the next five years. Among institutional clients like pension funds, 37 percent of those polled said they expect hedge funds to become somewhat less or much less important.
Wealthy investors and pension funds helped hedge fund industry assets double to $1.7 trillion in the last three years, but recently the loosely regulated portfolios have disappointed investors with their worst-ever returns.
New York (HedgeCo.Net) – Although hedge funds finished up 2008 with some of the worst numbers to date, they showed some signs of promise in December. According to the latest research by the Hennessee Group LLC, a New York-based advisor to hedge fund investors, hedge funds advanced .51 percent in December.
They finished up the year down 19.15 percent. Although it was a dismal year for hedge funds as a whole, they still outperformed the S & P, which was down 38.5 percent on the year, the Dow Jones, who dropped almost 34 percent, and the NASDAQ Composite Index, which posted a 40 percent drop on the year.
One challenge for hedge funds in 2008 was the record number of redemption requests brought on by clients. Large hedge funds such as Citadel, Harbinger and Cerberus, along with about 80 others, had to put some form of restrictions on client withdrawals.
“Year-end redemptions were significant, as the average fund returned 15% to 25% of investors’ assets. Combined with negative performance and complete liquidations, the entire hedge fund industry started 2009 at close to 50% of the capital it was at the beginning of 2008,” said Charles Gradante, Co-Founder of the Hennessee Group. “However, this should be a positive for funds as less capital will be chasing the same long/short trades, which should lead to better returns.”
The Hennessee Long/Short Equity Index saw a .31 percent advance in December, while the year to date was down over 18 percent. The Global/Macro Index rose .61 percent in December, although taking an almost 21 percent hit for the year. The Arbitrage/Event Driven Index, which was down 18.5 percent on the year, advanced 1 percent in December.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
