The Global hedge funds lost $100 billion on redemptions in October (Update 1)

Liquidations Hurt Hedge Funds; Fund Managers Doubly Hurting;
Man Group Assets Dwindle, Sparx Posts Loss, and Tontine Liquidates Two Funds
Bloomberg Video, November 13, 2008 08:39 am EST
The global hedge fund industry lost $100 billion of assets in October, according to an estimate from Eurekahedge Pte, as firms including Sparx Group Co. and Tantallon Capital were buffeted by investor redemptions.

Funds fell an average 3.3 percent in October, based on preliminary figures from the Singapore-based data provider, as measured by the Eurekahedge Hedge Fund Index, which tracks the performance of more than 2,000 funds that invest globally.
The loss compares with the 19 percent slide in the MSCI World Index last month

The biggest market losses since the Great Depression and investor withdrawals hurt the $1.7 trillion hedge funds industry that manages largely unregulated pools of capital. The index of global funds has lost 11 percent this year, set for the worst performance since 2000. This wave of redemption in the hedge fund industry is going to last for at least another six months.

Some hedge funds which severed losses are:

1. Sparx Group Co., Asia's biggest hedge- fund manager with $8.5 billion in assets, posted a first-half loss on redemptions and falling stock prices earlier this week. Its assets under management on a preliminary basis were 839.1 billion yen ($8.8 billion) as of Oct. 31, compared with a peak of 2 trillion yen in August 2006.


2. In Europe, Man Group Plc, the largest publicly traded hedge- fund manager, reported assets under management, which stood at $70.3 billion as of Sept. 30, fell to $61 billion at the beginning of November, the least since March 2007.


3. The Eurekahedge Asian Hedge Fund Index lost 4.3 percent. Singapore-based Tantallon's long-short fund, which seeks to profit from both gains and declines in stock prices, fell 28.6 percent this year through October. It was up 0.59 percent last month, Bloomberg data show.


4. The Eurekahedge North American Hedge Fund Index fell 4 percent, the firm said, while the index tracking Eastern Europe and Russia was the worst performer with a slide of 16 percent.

Related Posts :

11/12/2008 Market Recap - Markets were dominated by irrational selling

Sources :

Bloomberg: Hedge Funds Lost $100 Billion on Investor Withdrawals (Update1), November 12, 2008 20:56 EST

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