Investors withdrew more money from hedge funds than at any point since October 2009 last month, reflecting ongoing difficulties in the global equity markets, GlobeOp data shows.
The firm said that hedge fund flows measured by the GlobeOp Capital Movement Index were negative 0.2 percent in July. The index charts month net subscriptions and redemptions among GlobeOp's fund administration clients, who represent between eight and 10 percent of the global hedge fund industry.
GlobeOp's figures are the latest signal that hedge funds are struggling amid broader concerns about the health of the world economy. Earlier this month, Hedge Fund Research reported that the average hedge fund rose only 0.76 percent through the first half of 2011, while the HFRX Global hedge fund index dropped 2.12 percent over the same period.
However GlobeOp Chief Executive Hans Hufschmid says his firm's data also points to the notion that the half-year point is typically when investors review and recalibrate their overall capital allocations.
"From a quarterly perspective, the outflows at the last four quarterly closes have been remarkable and steady, including this one," Hufschmid said. "Though it's been equally difficult for equity markets and hedge funds in recent months, I think the market has done quite well considering the circumstances."
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