Hedge Funds

Hedge fund exit requests rise in November


Investors flagged their intention to shift more money out of hedge funds in November as they adjusted positions before the year-end, data showed on Friday.

The SS&C GlobeOp Forward Redemption Indicator — withdrawal requests expressed as a percentage of assets under administration — rose to 4.9 percent from October's 3 percent, data from fund administrator SS&C Technologies showed.

But requests fell slightly from a year earlier, when the figure came in at 5.1 percent.

"The months of November and December typically show the highest readings of the year ... due to year-end rebalancing," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies, adding that this was the lowest November reading for the index since 2011.

"This result is consistent with other recent data indicating an improving underlying trend in overall hedge fund allocations, even as investors rebalance their portfolios."

Hedge funds typically open for subscription or redemption at the start of every month or quarter.

The index compiled by the fund administrator is based on data provided by its clients, and represents about 10 percent of assets invested in the hedge fund sector globally.