July hedge fund outflows at $32 billion

Hedge funds overall experienced outflows of $32 billion in July, according to data from the TrimTabs/Barclay Hedge Fund Report. The report is the first from a partnership between BarclayHedge, which provides monthly hedge fund asset information, and TrimTabs Investment Research, which analyzes the data, said Sol Waksman, president of BarclayHedge. TrimTabs researchers estimated hedge funds of funds had outflows of $55 billion in July while hedge funds had inflows of $23 billion. Because most hedge funds require between 30 and 60 days’ redemption notice, Charles Biderman, TrimTabs CEO, said he concluded that hedge funds of funds’ redemption requests at the end of May were reflected in July asset figures. Mr. Biderman said: “It is likely the fund-of-hedge-fund requests for redemptions (from underlying hedge funds in their portfolios) triggered the hedge fund unwinding that knocked more than $2 trillion off the market cap of the U.S. stock market and probably another $2 trillion off the market cap of non-U.S. markets.”