Hedge Fund Exits
Hedge Fund Exits Hit Record Low to Start 2012
The beginning of 2012 has so far been kind to hedge funds, with January bringing steady inflows and solid performance. Overall net inflows to hedge funds rose by 2.25% after hedge funds tacked on returns of about 2.6% in January. Hedge fund investors have decided to stick with the sector leading hedge fund exits to hit a record low.
The GlobeOp (GO.L) Capital Movement Index, which tracks monthly net subscriptions to and redemptions from hedge funds managing around $173 billion (110 billion pounds), advanced to 142.6 points, the highest since October 2008.
Gross outflows were at their lowest on record at just 0.53 percent in the month to February 1, as investors hung on at a time when government bonds are yielding low returns.
"It could well be that in a zero interest rate environment and a challenging equity market, a diversified portfolio of hedge fund investments is becoming an ever-more attractive alternative," GlobeOp Chief Executive Hans Hufschmid said.
"Investors remain committed to the hedge fund sector," he said, adding that institutional investors hadn't been deterred by the sector's downturn in 2011 as they took a longer-term view of their allocation strategies. Source
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