Hedge fund investors redeemed a net US$2.2 billion (0.1% of assets) in October, reversing course after buying US$4.4 billion in September, according to a report by BarclayHedge and TrimTabs Investment Research.
Sol Waksman, president and founder of BarclayHedge, said: "The outflow in October was only the second for hedge funds this year. Hedge funds have taken in $49.4 billion so far in 2013, a sharp reversal from the outflow of $12.9 billion outflow in the same period last year. Industry assets stood at a five-year high of $2.0 trillion, according to estimates based on data from 3,348 funds. Assets are up 15.3% in 2013 but are down 16.1% from the all-time peak of $2.4 trillion in June 2008."
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The monthly TrimTabs/BarclayHedge Hedge Fund Flow Report reported that the industry gained 1.7% in October, underperforming the S&P 500, which gained 4.6%.
Equity Long Only hedge funds gained 1.9% in October, down from 5.9% in September. Equity Long Bias funds, meanwhile, gained 2.3% in October, down from a 3.1% gain in September.
Funds of hedge funds shed US$1.2 billion (0.2% of assets) in October, adding to a US$2.6 billion outflow in September.
Waksman added: "Outflows from funds of funds have been relentless. Investors pulled money out of them in 22 of the past 24 months."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMeanwhile, the monthly TrimTabs/BarclayHedge Survey of Hedge Fund Managers finds that only 18.3% of hedge fund managers were bearish on the S&P 500 in November, the lowest level this year.
Two-thirds of survey respondents expect equities to outperform bonds and precious metals over the next six months. A similar proportion expects developed markets to outpace emerging and frontier markets in the same period.
