Hedge fund redemption activity dropped to its lowest level in five years in January, pointing to improving investor confidence despite rising geopolitical and macroeconomic uncertainty, according to the latest data from SS&C GlobeOp.
The SS&C GlobeOp Forward Redemption Indicator fell to 1.46% in January 2026, down from 2.35% in December. The measure represents forward-looking redemption notices submitted by investors across hedge funds administered on the SS&C GlobeOp platform.
SS&C said the latest reading marked the lowest monthly redemption notice level since early 2021, extending a long-term decline from the peaks seen during the global financial crisis, when the indicator reached 19.27% in November 2008.
The decline in redemption requests comes at a time when market volatility has increased following renewed trade tensions, tariff threats and shifting foreign policy dynamics. According to SS&C, heightened volatility – after a period of relative calm late last year – may be reinforcing the appeal of hedge fund strategies designed to generate returns across changing market regimes.
Bill Stone, chairman and chief executive officer of SS&C Technologies, said the environment could prove supportive for active managers.
“Elevated volatility and the potential for significant drawdowns create favourable conditions for hedge funds to generate attractive risk-adjusted returns,” he said.
The Forward Redemption Indicator is based on actual investor notices, which are typically submitted 30 to 90 days ahead of redemption dates, providing an early view of the industry’s redemption pipeline. While notices can be withdrawn and redemption terms vary by fund, movements in the indicator are widely viewed as a proxy for investor sentiment toward hedge fund allocations.
SS&C GlobeOp administers approximately 10% of global hedge fund assets, giving the indicator broad coverage across strategies and fund sizes.
The next update to the Forward Redemption Indicator is scheduled for 23 February 2026.
