Investor redemptions from hedge funds remained relatively subdued in May, according to the latest SSC GlobeOp Forward Redemption Indicator, suggesting allocators are maintaining exposure despite continued market volatility.
The indicator, which measures anticipated investor withdrawals as a percentage of assets under administration, rose modestly to 2.17% for June, compared with 1.98% in the previous month. The figure remains below long-term historical averages, pointing to stable investor sentiment across the hedge fund sector.
SSC GlobeOp notes institutional investors continue to seek diversification amid uncertainty surrounding interest rates, inflation and geopolitical risk.
The latest reading comes as many hedge funds navigate mixed market conditions across equities, fixed income and commodities. Managers have increasingly focused on tactical trading and diversified strategies to manage volatility and generate returns.
Industry observers say relatively low redemption levels indicate investors remain supportive of hedge funds’ ability to provide downside protection and uncorrelated performance during periods of macroeconomic uncertainty.
