Hedge fund is facing severe redemptions
New data just came out from TrimTabs Investment Research: Investors withdrew a record $43 billion from hedge funds in September, the outflows were the most since 2000. Among this withdraw, investors pulled $14.4 billion from funds focused on distressed securities and $8.4 billion from long-short funds.
Hedge funds fell 4.7 percent in September, the $1.9 trillion industry's worst month since LTCM collapsed in 1998, the drop left funds down 9.4 percent for the year.
I believe most of the hedge funds have sold enough equities to cover the redemptions. 40 percent or so cash position is a popular holding strategy for hedge funds after the bloodbath for last year. There shouldn't be more forced fire-selling.
Hedge funds fell 4.7 percent in September, the $1.9 trillion industry's worst month since LTCM collapsed in 1998, the drop left funds down 9.4 percent for the year.
I believe most of the hedge funds have sold enough equities to cover the redemptions. 40 percent or so cash position is a popular holding strategy for hedge funds after the bloodbath for last year. There shouldn't be more forced fire-selling.
Labels: hedge fund
posted by Jiu Zhuang at
4:24 PM
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