|Why crazy bets. Aivars Lode|
|Tuesday, December 20, 2011||Email this story | News Tracker | Reprints | Printable Version|
"The month-on-month increase is within the normal range of a seasonal pattern, as investors prepare to rebalance their portfolios at year end," said Hans Hufschmid, chief executive officer of GlobeOp Financial Services, in a statement.
Hedge funds are closing a year in which they have largely failed to deliver impressive returns, with volatile markets making it difficult to time their bets or hold onto gains. The average hedge fund is down 4.45 percent in the year to Dec. 15, according to Hedge Fund Research.
Investors gave notice to withdraw 4.59 percent of assets under administration in December 2010, almost the same as this year. The previous high for redemptions in 2011 was in June, at 4.01 percent.
Forward redemptions as a percentage of GlobeOp assets under administration have dropped significantly since hitting a high of over 19 percent in November 2008, shortly after the collapse of U.S. investment bank Lehman Brothers.
While the volume of redemption notices have risen, a separate indicator by GlobeOp released earlier this month showed hedge funds were still seen as crucial ingredients of a rounded, diversified portfolio.
The sector recorded higher cumulative net subscriptions in December than at any time since Lehman's collapse, as investors turn to alternative strategies to ride out volatile markets.
By Yeganeh Torbati