Investors redeemed a net USD20.70 billion from hedge funds in June, bringing Q2 net flows to negative USD10.68 billion and H1 2016 net flows to negative USD27.95 billion, according to eVestment’s latest Hedge Fund Industry Asset Flow Report.
As a result of the redemptions, the largest June since eVestment began tracking monthly flows in 2009, global hedge fund assets dropped below USD3 trillion.
eVestments says: “while there are exceptions, investors are clearly dissatisfied not only with 2015 returns, but also with performance from portions of the industry in 2016. The result of the Brexit vote, and its impact on returns across the industry, has likely not been factored into investor flows to this point given redemption requests typically require at least a month's notice.”
For the second consecutive month, funds domiciled in Europe experienced elevated redemption pressure and the majority of redemptions came from UK firms and from within long/short equity and large managed futures funds.
Commodity fund flows were positive again in June for the ninth month of inflows in the last ten which should keep investor sentiment positive for some time moving forward.
