LONDON (Reuters) - Investors’ interest in hedge funds fell in January as they pulled out more cash than they invested, data showed on Tuesday, part of an annual rejig of portfolios.
The SS&C GlobeOp Capital Movement Index, which calculates monthly hedge fund subscriptions minus redemptions, fell 2.95 percent in January, the sharpest drop in a year. That compared with a rise of 0.39 percent in December.
“In line with year-end portfolio rebalancing, January net capital flows were negative, with higher capital activity overall,” said Bill Stone, chairman and CEO of SS&C Technologies.
The index compiled by the fund administrator is based on data provided by its clients and represents about 10 percent of assets invested in the hedge fund sector globally.
Hedge funds returns, as measured by the SS&C GlobeOp Hedge Fund Performance Index, stood at 0.11 percent in December, the data showed.
Reporting by Nishant Kumar; Editing by Crispian Balmer