Wednesday, June 12, 2024

Long/short equity suffers steep redemptions in October

Hedge fund outflows continued last month, with a net $5bn being pulled from long/short equity according to eVestment.

Most strategies saw outflows, including multi-strategy operators, which had a $1.5bn reduction, leaving it down $4.2bn year-to-date in a big turnaround after two years of inflows.

But long/short equity (-$28bn) and event-driven (-$23.5bn) have seen the biggest reductions due to outflows so far this year.

Fixed income and credit funds continue to be the most popular, growing by $0.4bn on inflows in October, their fifth month of positive movement in six. But year-to-date flows for the strategy group are still in negative territory (-$2.8bn).

The hedge fund industry as a whole had a net outflow of $7.6bn in October, taking YTD flow movement to -$74.9bn.