New York (HedgeCo.Net) Earlier this month it was reported that hedge fund inflows in 2014 were the highest they had been since 2007. Last week, the SS&C GlobeOp Forward Redemption indicator showed that withdrawal requests dropped to 2.49% in January. That is down from 2.67% last January and down from 5.87% in December. It is also the lowest monthly redemption percentage since January 2013.

The SS&C GlobeOp Forward Redemption indicator is compiled by SS&C Technologies Holdings. The information is gathered from the company’s fund clients and that group manages approximately 10% of the total assets invested in hedge funds.
With inflows hitting a seven-year high and redemptions hitting a two-year low, hedge fund managers have to be pleased with the asset growth.

It is a little surprising to see inflows increasing and redemptions slowing considering that the industry as a whole underperformed the market last year. Perhaps investors are realizing the benefit of professional investment management and are concerned about the bull market potentially coming to an end.

Rick Pendergraft
Investment Analyst
HedgeCoVest