* Exit requests rise to 3.71 pct in June from 3.31 pct in
* Requests lower than in June of previous four years
* Hedge funds in positive territory so far this year
By Laurence Fletcher
LONDON, June 22 Client demands to pull money out
of hedge funds remained relatively subdued in June, data shows,
in a sign that investors are still backing these freewheeling
portfolios to guide them through the financial crisis.
The GlobeOp Forward Redemption Indicator, a monthly snapshot
of clients giving notice to withdraw their cash as a percentage
of GlobeOp's assets under administration, measured 3.71 percent
While this was up from 3.31 percent in May and the highest
level so far this year, redemption requests tend to be higher at
the end of the quarter and particularly in June, ahead of July 1
redemptions, and December.
The figure was below the levels seen in the June of any of
the past four years.
"It's a pretty solid number, there's not a whole lot of
money coming out," said GlobeOp CEO Hans Hufschmid.
"A well-diversified portfolio of hedge funds is not a bad
place to be, particularly with uncertainty in equity markets and
the situation in Europe, while in fixed income you essentially
don't get any yield at all."
Hedge funds are in positive territory in 2012 after a rally
early on in the year, although gains have been eroded by recent
market volatility as fears over the euro zone's debt crisis have
According to the GlobeOp Hedge Fund Performance Index funds
have gained 4.15 percent in the five months to May. However, the
average hedge fund is up just 1.25 percent to June 20 after
losing further ground this month, according to rival data
provider Hedge Fund Research.
GlobeOp's data covers around $187 billion of hedge fund
assets under administration, or around 8 to 10 percent of the
global hedge fund industry.
The GlobeOp Forward Redemption Indicator hit an all-time
high of 19.27 percent in November 2008 in the wake of the
collapse of U.S. investment bank Lehman Brothers, but has not
risen above 10 percent since September 2009.