Wednesday, November 21, 2012

Worries on U.S. taxes drive hedge fund exits to near three-year high




The demand from investors to pull money out of hedge funds neared a three-year high this month, industry data showed, amid concerns over U.S. taxation of wealthy individuals under President Barack Obama and lackluster hedge fund performance.

Hedge fund administrator SS&C GlobeOp's forward redemption indicator, a monthly snapshot of clients giving notice to withdraw their cash as a percentage of its assets under administration, measured 5.19 percent in November.  The rate compares to 3.19 percent last month and 3.44 percent in November 2011.

SS&C GlobeOp cited uncertainty in the markets and Obama's election victory as helping propel the number of client demands to pull money out of hedge funds to their highest November recording since 2008 and the highest overall figure since December 2009.  Bill Stone, CEO of SS&C Technologies, said fears that gains from hedge fund portfolios could be taxed at higher rates under Obama may have driven this month's figures....

Wait, wait....there's more at highhttp://www.reuters.com/article/2012/11/20/us-investing-hedgefunds-redemptions-idUSBRE8AJ1F820121120

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