Forget everything you’ve heard about the Wall of Worry. Reuters reports that hedge fund clients' demands for their money back fell to a record low this month, data showed on Wednesday, suggesting investors view these freewheeling portfolios as one of the best ways to ride out the euro zone debt crisis.
The GlobeOp Forward Redemption Indicator -- a monthly snapshot of clients giving advance notice they want their money back as a percentage of GlobeOp's assets under administration -- fell to 2.08 percent. This is below the 4.01 percent seen in June, which was the biggest month of withdrawal requests since December 2010, and 3.92 percent in May.
While July tends to see lower redemption demands than preceding months, this month's exit requests are the lowest since GlobeOp's records begin in January 2008.
"Where are you going to put your money (if you take it out of hedge funds)?" GlobeOp CEO Hans Hufschmid told Reuters. "From a market perspective there will be very good opportunities coming up, and hedge funds are as good a place as any to take advantage of them when they do.?"
Read all about it at http://www.reuters.com/article/2011/07/20/us-globeop-data-idUSTRE76J6NL20110720
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