- Advertisement -
- Advertisement -

Related

Investors Flee Hedge Funds

Latest Report

This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

Stockholm (HedgeNordic) – Capital is flowing out of the hedge fund industry for a third consecutive quarter, according to alternative data specialist Preqin. Investors pulled out $45.1 billion from the industry in the fourth quarter of 2018, which brought last year’s total volume of net outflows to $33.9 billion.

The fourth-quarter outflows were mainly attributable to equity-focused and CTA strategies, which registered net outflows of $20.9 billion and $21.3 billion, respectively. For the entire 2018, equity strategies posted the most massive redemptions across all main strategies tracked by Preqin. The net outflows amounted to $23.7 billion and brought the assets under management for the strategy down to $852.8 billion.

Multi-strategy vehicles and funds employing niche strategies were the only two groups of strategies that attracted investor capital in the fourth, posting net inflows of $1.4 billion and $7 billion, correspondingly. According to Preqin data, the hedge fund industry’s assets under management stand at $3.45 trillion as of the end of December, which marks a year-over-year decline of 3.5 percent.

Other sources corroborate Preqin’s findings. Hedge fund data provider Hedge Fund Research (HFR), for instance, writes that investors redeemed an estimated $22.5 billion from hedge funds in the four quarter. The fourth-quarter redemptions brought the hedge fund industry’s full-year capital outflows to $34 billion, leaving the industry with $3.11 trillion in assets under management.

 

Picture © Lightspring—shutterstock

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Slimmer Nordic Lineup Still Delivers at HFM Awards

Despite the Nordic region featuring a slimmer lineup of nominees at this year’s HFM European Performance Awards compared to previous years, three Nordic managers...

More Equities, Less Diversification for Finnish Pension System

In an effort to safeguard the long-term sustainability of Finland’s pension system amid demographic pressures, new rules for private-sector earnings-related pensions are set to...

Investors Rethink Defense and ESG

Several banks and pension giants still have ESG rules that in practice exclude defense stocks. But new figures reveals that something is happening in...

Active Ownership – The Merchant’s Challenge

By Arne Simensen and Jakob Gravdal at Anchora Capital: In the Dutch Golden Age, Isaac Le Maire, initial largest shareholder in the world's first...

Alcur Caps Subscriptions, Prioritizes Efficient Management

On the back of consistent returns and heightened investor interest, stock-picking boutique Alcur Fonder will introduce a limited subscription mechanism for its flagship hedge...

Combining Expertise for Private Equity Sustainability and Energy Transition

HedgeNordic interviewed Federated Hermes Limited’s Head of Responsibility and EOS, Leon Kamhi, and Principal and Head of Portfolio Strategy and Solutions within Private Equity, Christian...

Allocator Interviews

In-Depth: High Yield

- Advertisement -

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.