Hedge funds rebound as inflows extend eight-month run: SS&C



SS&C Technologies reported that hedge funds returned to positive territory in August following July’s sharp losses, while investor capital flows remained positive for an eighth consecutive month.

The SS&C GlobeOp Hedge Fund Performance Index gained 0.83% gross in August, reversing part of a 2.93% decline in July.

Funds tracked by the index remained up 8.63% for the year and 14.90% over the latest 12 months.

Investor capital movements also remained positive. The SS&C GlobeOp Capital Movement Index advanced 0.65% in September, marking an eighth consecutive month of net inflows.

The index reached 133.10, its highest level over the past 12 months and 5.50 points above its level a year earlier.

Investors maintain allocations

The continued inflows provide further evidence that July’s market disruption has not prompted a broader withdrawal of capital from hedge funds.

The latest figures extend the positive investor flows reported by SS&C in August, when its Capital Movement Index advanced 0.92% despite the previous month’s performance losses.

The most recent forward redemption requests have also remained subdued, measuring 1.64% in August compared with a five-year average of 2.37%.

Bill Stone, chairman and chief executive of SS&C Technologies, said September’s capital movement reading was consistent with longer-term trends of positive flows and pointed to continued investor demand for hedge fund diversification and downside protection.

Performance recovers from July sell-off

August’s 0.83% gain also marked a partial recovery from an unusually difficult July for hedge funds.

The July decline had reduced the SS&C index’s year-to-date gain to 7.56%, from 10.59% at the end of June. August’s recovery lifted the figure back to 8.63%.

The SS&C GlobeOp Performance Index is asset weighted and measures aggregate performance across funds for which the administrator provides monthly services. The platform represents approximately 10% of estimated hedge fund industry assets.