Oct 29, 2019

Hedge funds see 6th consecutive quarter of outflows

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Adapted from eVestment; Chart: Axios Visuals

Hedge funds saw overall negative returns for the second month in a row in September and investors continued to pull their money out, data from research firm eVestment shows.

Why it matters: It’s the latest piece of negative data for an industry that appears to have its best days behind it.

By the numbers: More than $12 billion was redeemed from the global hedge fund industry in September, bringing year-to-date flows to -$76.86 billion.

  • Total third quarter outflows of $29.37 billion marked the sixth consecutive quarterly outflow for the industry.
  • Total hedge fund industry assets under management were $3.27 trillion at the end of September, according to the report.

Between the lines: Multi-asset strategies have seen a wave of selling so far this year after a brutal 2018.

Go deeper: The hedge fund moment is over

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Hedge funds could lose more cash after another weak month

Reproduced from eVestment: Table: Axios Visuals

Hedge funds again lagged the returns of U.S. stocks as well as a combined fund of 50% global stocks and 50% global bonds in the third quarter and in October, according to data from eVestment.

Why it matters: Hedge funds aim to deliver consistent returns for investors that outperform during times of market stress, but despite increased uncertainty and geopolitical tensions in Q3, the industry saw negative returns on an overall basis.

Go deeperArrowNov 13, 2019

Russell Investments is looking for a buyer

Source: Dealogic; Note: 2019 represents year-to-date figure; Chart: Axios Visuals

Russell Investments, the Seattle-based asset manager, is on the auction block per the Financial Times.

Why it matters: The interest to sell "follows several bruising years for the [fund management] industry, with profits at some of the biggest fund houses squeezed by the rise of passive investing."

Go deeperArrowNov 20, 2019

Equity and M&A deals plummet in tough Q3

Adapted from S&P Global; Chart: Axios Visuals

U.S. and global dealmaking slowed significantly in the third quarter, with equity and merger and acquisition announcements "plummeting" year over year and quarter over quarter, according to the latest data from S&P Global Market Intelligence.

By the numbers: The global total value raised from equity deals fell 37.1% quarter over quarter and 29.4% year over year to $91.85 billion.

Go deeperArrowNov 7, 2019