Redemption pressures hinder hedge fund growth


The hedge fund industry’s assets continue to sit below the $3 trillion after facing stagnant growth in April, due to continued redemption pressures offsetting any meaningful performance-related asset gains, according to a report from investment intelligence firm eVestment.

The report said investors removed $1.9 billion from hedge funds in April, the sixth month in the last eight that the industry has faced net outflows.

Performance gains during the month were minimal, but helped industry assets increase $6.86 billion to $2.986 trillion.

The report also found that commodity strategies remain in favour, macro fund redemption pressures abated, multi-strategy funds showed weakness, and prior losses in credit strategies weighed most heavily on overall flows.

There has also been a negative sentiment towards emerging market exposure, which has persisted for nearly two years, continuing into April 2016.

As Brazil and Russia-fund performance rebounded in recent months, redemptions from China-focused funds has intensified.

The report indicates there is likely no near-term relief for the universe’s aggregate redemption pressure.

Hedge funds, eVestment, Global, Cayman Islands

Cayman Funds