Hedge Fund Redemption Requests
Hedge Funds See Record-Low Redemption Requests
Hedge fund redemption requests fell to record-lows as investors decided to keep their money with their current managers. Two factors have been attributed to this trend: first, the improving market conditions and investor sentiment; second, the seasonal drop in asset reallocation, according to GlobeOp.
Redemption requests by hedge fund clients have fallen to the lowest monthly level on record as improving market sentiment combined with a typical seasonal lull in asset re-allocation, data shows.
The GlobeOp Forward Redemption Indicator, a monthly snapshot of clients giving notice to withdraw their cash as a percentage of GlobeOp's assets under administration, measured 1.85 percent in the January report, down from 4.58 percent in the December report, which shows requests to redeem funds in January, which is typically a period of heavy re-allocation.
That is the lowest recorded since the January report in 2008, when GlobeOp began compiling the index.
January report notifications were also substantially lower than the same time last year, when requests stood at 2.79 percent.
"It's more to do with a reallocation of investments. People take money out in January and redeploy it in February and March," GlobeOp Financial Services (GO.L) Chief Executive Hans Hufschmid said. Source
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