Investors exit hedge funds at fastest rate in four years

January 16, 2014 Leave a comment

Investors exit hedge funds at fastest rate in four years

Mon, Jan 13 2014

LONDON (Reuters) – Investors pulled out money from hedge funds at the fastest rate for more than four years in December, following a year in which many managers’ performance disappointed, new data showed on Monday.The SS&C GlobeOp Capital Movement Index, which calculates monthly hedge fund subscriptions less redemptions, measured minus 3.56 percent for December, the biggest negative reading since September 2009.

While the end of the year period usually sees a pick-up in redemptions as investors look to move money around their portfolio ahead of the new year, December’s reading is notably high. In the same month last year the index measured minus 2.61 percent.

Hedge funds made their investors an average of 12.32 percent last year following a 0.72 percent gain in December, the SS&C GlobeOp Hedge Fund Performance Index separately showed on Monday, but this compares poorly with the rise of most stock indexes, the performance of which investors can access cheaply.

The MSCI World Index rose around 24 percent last year, beating all but a few top performing funds.

Across 2013 as a whole, the Capital Movement Index advanced 0.16 percent, meaning inflows into the industry only marginally outweighed outflows.

Filed under Macro Trends

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment