Hedge Fund Withdrawals
Hedge Fund Redemptions at over $40B
A recent report from Trim Tab estimated that $43B worth of assets were withdrawn from hedge funds in September. This same group predicts that we won't see another month this severe but with lock up periods and gating clauses that is yet to be seen. Here is the article on this topic:
Investors withdrew a record $43 billion from hedge funds in September as they fled distressed-securities and stock funds because of poor performance, TrimTabs Investment Research said today.
The estimated outflows were the most since TrimTabs started tracking the industry in 2000, Chief Executive Officer Charles Biderman said in an interview. Investors pulled $14.4 billion from funds focused on troubled securities and $8.4 billion from equity long-short funds, which bet on rising and falling stocks, the Sausalito, California-based company said in a statement.
``We're told from some of our clients that most of the hedge funds have sold enough equities to cover the redemptions,'' Biderman said. ``There shouldn't be more forced selling.'' Source