Hedge funds reverse four-month redemption trend in October, says Backstop BarclayHedge Tue, 17/12/2019 - 09:23 Tags : Results & performance Funds The hedge fund industry broke free from a four-month redemption streak in October with USD1.9 billion in net inflows for the month. October’s inflows represented 0.1 per cent of industry assets and were a turnaround from September’s USD14.7 billion in redemptions, according to the Barclay Fund Flow Indicator published by BarclayHedge. Coupled with USD14.7 billion in October trading profits, the inflows brought total industry assets to more than USD3.13 trillion as the month ended, up from USD3.05 trillion at the end of September. October’s net inflows came despite troubling economic news that led to significant redemptions from hedge funds in the US, its offshore islands, China and Hong Kong. Data from the more than 6,000 hedge funds (excluding CTAs) in the BarclayHedge database showed investors pulling nearly USD3.5 billion from hedge funds in the US and its offshore islands during October, while funds in China and Hong Kong experienced more than USD1.0 billion in redemptions. Still, hedge funds in the UK and its offshore islands managed to shake off the Brexit fears that had troubled investors to post nearly USD2.9 billion in inflows, contributing to the industry-wide tally. “News of manufacturing downturns around the world, recession fears and heightened US-China trade tensions shaped many investors’ attitudes,” says Sol Waksman (pictured), president of BarclayHedge. “Still, some regions experienced positive flows as did a number of hedge fund sectors that contributed to industry-wide inflows.” For the 12 months ending Oct. 31, the hedge fund industry experienced USD147.2 billion in redemptions, 5.0 per cent of assets. A USD154.0 billion trading profit over the period brought total industry assets to more than USD3.13 trillion at the end of October, up from more than USD2.97 trillion a year earlier. Net redemptions remained the norm for most hedge fund sectors over that same 12-month period, though a few continued to buck the trend. Among those posting net inflows for the 12 months were Macro funds with USD21.9 billion in inflows, 11.2 per cent of assets, Event Driven funds bringing in USD16.9 billion, 11.8 per cent of assets, and Emerging Market – Latin America funds adding USD1.6 billion, 14.6 per cent of assets. The sectors with the largest 12-month redemptions included Equity Long/Short funds which shed USD41.8 billion, 19.0 per cent of assets, Equity Long Bias funds with USD35.2 billion in outflows, 10.7 per cent of assets, and Fixed Income funds which experienced USD20.0 billion in outflows, 3.5 per cent of assets. The managed futures industry also experienced net inflows in October, bringing in more than USD899.5 million in assets. A USD3.3 billion trading loss left total industry assets at USD305.4 billion as October ended, down from USD308.4 billion at the end of September. “CTA funds continued to attract investors looking for diversification in the face of worrisome economic indicators that challenged other sectors,” says Waksman. Geographic regions remained split between those experiencing managed futures inflows and redemptions in October. CTA funds in the US and its offshore islands took in more than USD1.0 billion during the month, 0.5 per cent of assets, while funds in Continental Europe experienced USD102.4 million in inflows, 0.3 per cent of assets. Among the regions on the other side of the ledger, the U.K. and its offshore islands experienced USD157.1 million in outflows, 0.3 per cent of assets, while funds in Asia excluding China and Japan shed USD7.4 million, 0.1 per cent of assets. For the 12 months ending 31 October, managed futures funds experienced USD18.4 billion in redemptions, 5.2 per cent of industry assets. An USD11.3 billion trading profit over the period contributed to the industry’s USD305.4 billion in total assets at the end of October, down from USD354.6 billion a year earlier. https://www.hedgeweek.com/2019/12/1..._medium=email&utm_campaign=Hedgewire+17/12/19
Barclay CTA Index Gains 0.40% in Nov https://portal.barclayhedge.com/cgi-bin/indices/displayIndices.cgi?indexID=cta
When the Fed prints enough money, it will eventually make everything rally.... at least temporarily. No surprise.