Investors are asking for more of their money back from hedge funds in June than in any other month in 2011, data showed on Monday, as fund returns hit by May's commodity rout shake client confidence, according to Reuters.
The GlobeOp Forward Redemption Indicator -- a monthly snapshot of clients giving advance notice they want their money back as a percentage of GlobeOp's (GO.L) assets under administration -- rose to 4.01 percent from 3.92 percent in May. This represents the biggest month of withdrawal requests since December 2010, and follows a sharp rise in exit requests in May -- to 3.92 percent from 2.45 in April -- less than two weeks after commodity prices tumbled.
Many hedge funds positioned for rising prices were caught off guard in May when markets sold off quickly, hitting returns and squeezing new money flowing into funds to its lowest level in two years, according to GlobeOp's Capital Movement Index. Hedge funds lost 1.3 percent in performance terms during May, according to Hedge Fund Research, while the S&P 500 .SPX shed 1.4 percent, with some big-name funds losing much more….
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http://www.reuters.com/article/2011/06/21/uk-globeop-redemptions-idUSLNE75K06O20110621
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