Hedge funds experienced record net redemptions of $155 billion in 2008, which when combined with a performance decline of 18.3% for the HFRI Fund Weighted Composite index for the year, dropped total industry assets 25% to $1.4 trillion as of Dec. 31.
Fund managers are becoming increasingly optimistic about improving economic growth and the prospects of inflation, but they remain cautious over U.S. equities and emerging Chinese markets, according to Merrill Lynch’s January global fund managers survey.
The New-York based investment firm blamed the drop, in large part, to incurring $215 million in losses from investments in hedge funds and real estate products.
The Bank of New York Mellon Corp. reported an 88% drop in fourth quarter net income late Tuesday, stemming in large part from $1.24 billion in securities write-downs.
According to preliminary data from Hennessee Group LLC in New York, total hedge-fund assets declined by 39% to $1.21 trillion in 2008 — their lowest level since 2006.
The New York-based investment bank, which has now suffered five straight quarterly losses, incurred around $328 million in charges during the quarter, stemming mainly from expensing 2007’s employee stock awards.
State Street Corp. today reported a 71% profit drop in fourth-quarter earnings, along with increased unrealized losses in its commercial paper program and investment portfolio.
New tax laws went into effect Jan. 1, and your clients are wondering how the laws will affect their tax obligations for 2009.
TD Ameritrade Holding Corp., the discount brokerage firm that also offers custody services to independent investment advisers, reported fiscal 2009 first-quarter earnings today of $184.4 million, or 31 cents a share, meeting analysts’ forecasts.
The mysterious disappearance of a Florida hedge fund manager five days ago has prompted the Federal Bureau of Investigation and the Securities and Exchange Commission to join the investigation, published reports said.
