- Advertisement -
- Advertisement -

Large Macro Funds Bleed Assets

- 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

close

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

Most Popular This Week

Request for Proposal

- Advertisement -

Latest Articles

Expected 75 Point Hike in Riksbank Rate

Stockholm (HedgeNordic) – Sweden’s Riksbank raised the key interest rate by an expected 75 basis points to 2.5 percent, the highest level since 2008....

The Age of Macro is Back

Stockholm (HedgeNordic) – In recent years, fixed-income macro managers such as Carlsson Norén have struggled to deliver attractive absolute returns in a low-volatility environment...

Man AHL Launches its First Systematic Article 9 Fund

Stockholm (HedgeNordic) – Man Group’s quantitative investment arm and engine, Man AHL, has launched the asset manager’s first systematic Article 9 fund. Relying on...

Corporate Bonds are Very Attractive Finds Atlant Fonder

Stockholm (HedgeNordic) – This year’s broad sell-off in the bond market due to aggressive monetary tightening in the fight against inflation may have investors...

Afalon’s Holistic Approach Amid Fund Closure

Stockholm (HedgeNordic) –  Finnish asset manager Afalon Investment Management has called time on its hedge fund that sought to identify investments aligned with sustainability...

HedgeNordic’s CTA Roundtable Back in the Flesh

Stockholm (HedgeNordic) – On November 17, 2022, HedgeNordic hosted its traditional, annual CTA roundtable in Stockholm. After two years in a virtual format, it...