- Advertisement -
- Advertisement -

Asset Bleed Continues

- Advertisement -

Stockholm (HedgeNordic) – Last month, investors pulled money out of hedge funds for the eighth consecutive month, according to eVestment. Following net redemptions of $6.2 billion in October, the global hedge fund industry experienced net outflows of $87.9 billion year-to-date to the end of October.

According to eVestment, the most recent eight-month period “marks the most prolonged redemption pressures on the industry since 2008/2009.” The last time the industry experienced so many consecutive months of net redemptions was the period between the third quarter of 2008 and April of 2009.

About 45 percent of hedge funds from eVestment’s database with reported figures received net inflows in October, yet redemptions outweighed new allocations. Long/short equity hedge funds continue to experience the highest volume of net redemptions. Investors redeemed an estimated $4.8 billion from long/short equity funds in October, which brought the year-to-date volume of net outflows to $40.9 billion. This amount accounts for 5.4 percent of the $764.5 billion managed by long/short equity funds at the end of October.

Following several months of good returns, managed futures funds received new money for a third consecutive month. Managed futures funds received net inflows of $2.6 billion in October, reducing the year-to-date volume of net outflows to $6.8 billion. However, around 55 percent of managed futures funds experienced net redemptions last month, as allocations continue to go to a select group of firms. For the year, nearly 70 percent of this group experienced net outflows.

According to eVestment, the managed futures funds that received inflows so far in 2019 appear to have performed better than peers both this year and last year. The ten largest inflows in 2019 went to products that returned nearly eight percent on average this year and incurred an average loss of less than one percent last year, compared to the average loss of almost six percent for the universe. “The last two months have been difficult for the strategy and even for many (but not all) of these favored products,” writes eVestment.

On aggregate, macro funds in eVestment’s database did not receive net inflows in any month of 2019. Investors redeemed a net $2.7 billion in October from macro funds, bringing the year-to-date volume of net redemptions to $23.2 billion. According to eVestment, macro funds oversee $245.8 billion as of the end of October.


eVestment’s Hedge Fund Asset Flows Report for October can be accessed below:


Image by Ann San from Pixabay

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
Previous article
Next article

Latest Articles

Nordic Hedge Funds Sustain Momentum

Stockholm (HedgeNordic) – Following its strongest first quarter in 15 years, the Nordic hedge fund industry sustained momentum into April. As reflected by the...

The Hands-On Approach of NCI Advisory in Debt Investing

Stockholm (HedgeNordic) – With over 45 years of expertise in structured finance and debt asset management, Jørgen Beuchert has dedicated the last 15 years...

Hedge Fund Journal: Calculo Best in Commodity Trend Following

Stockholm (HedgeNordic) – Calculo Evolution Fund, a pure commodity trend-follower based in Denmark, has been recognized as the “Best Performing Commodity Trend Follower” over...

SRV’s Multi-Pillar Fixed-Income Strategy

Stockholm (HedgeNordic) – Despite Danish mortgage bonds being widely regarded as almost risk-free, occasional spikes in risk aversion trigger significant spread widening versus government...

DBi Pioneers Cost-Efficient Access to CTA Performance

Stockholm (HedgeNordic) – Trend-following CTAs or managed futures vehicles are often seen as effective diversifiers within investment portfolios, exhibiting limited correlation to equity and...

Swiss Bank Eyes Global Equities Through Quant and Options Overlay Funds

Stockholm (HedgeNordic) – A Swiss private bank is seeking to allocate a minimum of €20 million to a fund specializing in global equities through...

Allocator Interviews

Latest Articles

In-Depth: High Yield


Request for Proposal

- Advertisement -