June 19 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)