Mar 3, 2011

Posted by in Hedge Funds | 18 Comments

Global Hedge Funds

Global Hedge FundsAs the world turns, the global hedge fund industry shriveled a little more in July when investors pulled out nearly $3 billion (1.9 billion pounds) after the loosely regulated portfolios posted losses in May and June, researchers reported on Tuesday.

While assets stood at $1.53 trillion, their lowest level since November 2009, according to data released jointly by Trim Tabs and Barclay Hedge, firms that track performance and flow data.


Rebounding slightly,”Global Hedge funds posted a positive return in July, but they did not regain the ground they lost in May and June,” said Sol Waksman, founder and president of Barclay Hedge. “They also underperformed the S&P 500 by five percentage points,” he added.


With fears of a double dip recession looming once again, wall street worried about a slower than hoped-for economic rebound, investors were quick to cut risk in their investment portfolios by pulling $1.9 billion from funds specializing in emerging markets, the report found. An astronomical figure to say the least.


Back at the ranch or for a better word Algo’s if you will…funds specializing in fixed income strategies — often favored during uncertain economic times — pulled in $1.2 billion. Commodity trading advisors, who generally let computer models drive their trading moves, saw inflows of $3.8 billion.


Time will tell as it always does as to where and what type of presence Global Hedge Funds will stand in this “survival of the fittest arena” where we all know only the strong survive!


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