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SS&C Technologies reported that hedge fund investors are showing little appetite to withdraw capital despite renewed market volatility, with forward redemption requests falling close to their lowest level on record in July.
The SS&C GlobeOp Forward Redemption Indicator declined to 1.35% in July from 1.72% in June, leaving the measure just nine basis points above its all-time low of 1.26% recorded in April.
The indicator, which measures forward redemption notices as a proportion of assets administered on SS&C GlobeOp’s platform, has remained unusually subdued during 2026 despite sharp movements across technology stocks and renewed geopolitical tensions in the Middle East.
“Allocators are maintaining their hedge fund positions,” said Bill Stone, chairman and chief executive of SS&C Technologies, pointing to hedge funds’ uncorrelated returns and risk-adjusted performance.
Performance supports investor confidence
The redemption figures are accompanied by strong performance across funds administered by SS&C GlobeOp.
Its asset-weighted Hedge Fund Performance Index recorded a 3.26% gross flash return for the latest month, taking year-to-date performance to 10.59% and the trailing 12-month gain to 21.29%.
Those figures reinforce a trend visible across the industry during the first half of the year. Equity long/short and event-driven managers have produced some particularly strong results, while large multi-strategy platforms have generally continued delivering positive returns through periods of heightened volatility.
Recent market disruption has therefore yet to translate into materially higher investor withdrawals.
Capital retention strengthens
A second SS&C measure provides further evidence of that resilience.
The GlobeOp Capital Movement Index reached 131.49 in July, its highest reading of the past 12 months, compared with a low of 127.09 last August.
Taken together, the three indicators present a notably supportive picture for hedge funds: strong investment performance, low forward redemption requests and resilient capital movements.
That combination is particularly significant given the market backdrop. The recent unwind in crowded AI and semiconductor positions has produced sharp losses for some managers, while renewed conflict in the Middle East has added another source of volatility.
So far, however, there is little evidence that those shocks are causing investors to reconsider their broader hedge fund allocations.
With redemption notices typically submitted 30 to 90 days before capital is withdrawn, the Forward Redemption Indicator also offers an early view of future investor behaviour.
July’s reading suggests that, for now at least, allocators appear more inclined to ride out the volatility than head for the exits.