Hedge fund investors continued to hold their positions in July, with forward redemption notifications falling to one of their lowest levels on record despite renewed market volatility, according the latest data from SS&C GlobeOp.
The SS&C GlobeOp Forward Redemption Indicator fell to 1.35% in July from 1.72% in June, marking the lowest reading since January 2025, when the indicator stood at 1.32%.
The indicator tracks redemption notices received from investors in hedge funds administered by SS&C GlobeOp as a percentage of assets under administration at the start of the month.
Bill Stone, chairman and chief executive of SS&C Technologies, said the low level of redemption activity suggested investors were maintaining their hedge fund allocations despite a sharp reversal in AI and semiconductor momentum trades and rising tensions in the Middle East.
“Allocators are maintaining their hedge fund positions,” Stone said, adding that stable redemption trends indicated that hedge funds’ uncorrelated returns and risk-adjusted performance continued to support investor outcomes.
Redemption activity has remained well below the levels seen during the global financial crisis, when the indicator reached a record 19.27% in November 2008.
The July reading is based on actual redemption notifications received by SS&C GlobeOp. Such notices are typically submitted 30 to 90 days before the relevant redemption date, although investors can subsequently cancel them and individual fund terms governing redemption notices vary.
The indicator provides an early view of potential future outflows from hedge funds administered on the SS&C GlobeOp platform, although it does not represent actual redemptions completed during the month.
