Confidence in Hedge Funds Climbing as Other Options Take on Added Risk

September 11, 2011 James Heinsman Hedge Fund News

 

The GlobeOp Capital Movement Index measured gross outflows from hedge funds to be about 0.57% in August, which is the lowest amount since the records began to be kept by GlobeOp in January 2006.

This is the lowest amount of withdrawals from hedge funds since before the credit crisis began. Analysts believe investors are sticking with their hedge funds as traditional safe havens don’t seem quite as safe as they used to.

Rather than flowing into gold and Swiss Francs, the usual stopping ground for money when times are uncertain, investors are choosing to keep their money in hedge funds.

GlobeOp President and Chief Operating Officer Vernon Barback explained the situation.

“In these quite uncertain and challenging times for markets, when you look at redemptions, hedge fund investors seem to be quite comfortable staying put.”

“It is possible that as people look for safe havens, a well-diversified hedge fund portfolio … might be the next place for the flight to quality,” Barback added.

GlobeOp Captial Movement Index, Gold, Hedge Funds, Swiss Francs, Vernon Barback,

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