Investors increased requests to pull money out of hedge funds in June as they adjust positions before the end of the quarter, according to data released on Thursday.
The SS&C GlobeOp Forward Redemption Indicator, a monthly snapshot of global hedge fund clients giving notice to withdraw their cash expressed as a percentage of assets under administration, rose to 4.8 percent in June from 4.32 percent in May. It is the highest level since December, when the figure reached 5.9 percent.
Hedge funds, unlike mutual funds, traditionally lock investors' money up for months or even years, forcing clients to give advance notice on when they want to exit.
Chicago-based Hedge Fund Research said total hedge fund capital rose globally to a record $2.7 trillion at the end of the first quarter, with the money managed by 9,983 firms. During the first quarter, 289 new hedge funds set up shop while 272 closed down, HFR reported on Thursday.
(Reporting by Svea Herbst-Bayliss; Editing by Leslie Adler)