Hedge Funds Investor Redemptions

Hedge Funds Investor Redemptions

Poor Returns May Cause Redemptions from Hedge Funds

Hedge funds´ less than stellar returns over the last six months may cause even more pain for the industry. Analysts in the industry are predicting big redemptions from hedge funds as investors seek stronger returns elsewhere.
May's market tumult likely hurt hedge fund managers again in June and may inflict more pain in July as investors reacted to poor returns by pulling some of their money out, industry consultants forecast.

"We expect to see large outflows in June and July," executives at TrimTabs and BarclayHedge said in their latest report which was released on Monday.

Many hedge funds let their clients take money out only a few times a year and so reaction to the market's sharp drop two months ago could be slow in coming, the consultants said. Source

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