- Advertisement -
- Advertisement -

Related

Large Macro Funds Bleed Assets

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – After large losses in March pushed hedge fund industry assets below $3 trillion for the first time since 2014, investors redeemed an estimated $18 billion from hedge funds in April, according to eVestment. Following net redemptions of about $24 billion in March and $18 billion in April, net outflows in the hedge fund industry during the first four months of 2020 reached $31 billion.

According to eVestment, some large hedge fund vehicles experienced large redemptions in both March and April. In March, funds with more than $1 billion in assets under management experienced the largest outflows as a percentage of their total capital since the financial crisis. Last month, the percentage of funds that suffered net outflows of more than two percent of their assets declined significantly compared to March. However, the percentage of funds that lost more than five percent of assets due to redemptions did not decline meaningfully in April relative to March.

Source: eVestment.

With an estimated $9.2 billion in net redemptions, macro managers experienced the largest net outflows as a group in April. The redemptions were not widespread across all macro managers, as about 57 percent of the group reported redemptions for last month. According to eVestment, the outflows from macro managers were driven by targeted redemptions at some large macro funds, partly in response to poor performance. All ten macro funds with the largest redemptions in April had negative performance for the first four months of 2020. In contrast, of the ten macro funds that received the largest allocations in April, four of them had positive performance for the year.

“There are some segments that appear to be well-positioned in investors’ eyes, notably products in the credit space with a focus on distressed opportunities,” says Peter Laurelli, eVestment’s Global Head of Research. “There were some meaningful inflows for some event-driven and credit strategies in April, particularly for some distressed managers,” he writes. As a group, funds that focus on distressed opportunities received net inflows of $1.5 billion in April, taking the year-to-date net flows in positive territory at $0.7 billion. Event-driven managers received an estimated $0.5 billion in net inflows in April and $4.6 billion in the first four months of 2020.

Photo by Bernard Hermant on Unsplash

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

Hedge Funds Pay Off for the State Pension Fund of Finland

Finland’s largest institutional investors remain committed allocators to hedge funds, yet the State Pension Fund of Finland’s (VER) hedge fund allocation stood out as...

Carl Berg to Lead Niam’s Capital Formation Efforts in Sweden

Private markets firm Niam Group has strengthened its Capital Formation and Investor Relations team with the appointment of Carl Berg as Capital Formation Director...

Statistical Outlier Year for HCP Black

When HedgeNordic spoke with Tommi Kemppainen in early 2019, the CEO of Helsinki Capital Partners outlined a defensive positioning for the multi-strategy fund HCP...

Nordea Adds Systematic Fixed Income Expertise

Nordea Asset Management (NAM) has strengthened its data-driven investment capabilities with the addition of two London-based professionals, Lucette Yvernault and Marton Huebler, marking the...

From Short-Term Opportunity to Long-Term Outperformance

Borea Utbytte, a banking sector-focused equity fund under Norwegian boutique Borea Asset Management, celebrated its five-year anniversary at the turn of September to October....

Record Month for Tidan in Priced-to-Perfection Credit Market

Tidan Fund, a Stockholm-based hedge fund specialising in opportunities across corporate capital structures, marked its four-year anniversary in September with its strongest month on...

Allocator Interviews

In-Depth: High Yield

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.