Hedge Fund Redemptions Show Market is Maturing

In hedgeweek's Cayman Islands Hedge Fund Services 2017 (click here) special report, managing editor James Williams interviewed partner James Melen and senior counsel Prasana. The resulting article focussed on hedge fund redemptions and the maturing hedge fund market.

 

The third quarter of 2016 saw an estimated USD28 billion of hedge fund net outflows – the highest since 2009. This brought year-to-date redemptions to USD51.5 billion. Those suffering significant outflows included high profile stalwarts of the industry such as Brevan Howard, which saw USD3 billion in redemptions in the first six months of 2016.

 

There seems to be a significant trend of institutional investors looking at the hedge fund space carefully and making assessments with a view of repositioning capital to address internal requirements and investment mandates. Institutional investors have numerous options available to them such that they can redeem with a manager if they are dissatisfied with current performance and/or fees and move to another manager,” comments Prasana, Senior Counsel, Walkers (Cayman Islands).

 

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CAYMAN ISLANDS
James MelenPartnerT +1 345 814 4521james.melen@walkersglobal.com
Prasana Senior CounselT +1 345 814 6809prasana@walkersglobal.com