Hedge funds post worst quarter since 2008 crisis

Hedge funds post worst quarter since 2008 crisis
Hedge-fund assets contracted by $95 billion to $2.87 trillion during third quarter amid a surge of fund closures.
DEC 21, 2015
By  Bloomberg
Hedge fund closures surged in the three months to the end of September as money managers reeled from declines in commodity and equity markets, while high-yield credit spreads widened. Fund assets contracted by $95 billion to $2.87 trillion during the quarter, according to a report from Hedge Fund Research Inc. on Friday, the most since the fourth quarter of 2008, when the industry lost $314.4 billion amid the global financial crisis. The number of new hedge funds rose to 269 during the quarter, compared with 252 in the previous three months, taking the total number of funds started in 2015 to 785, the data showed. The number of funds liquidated climbed to 257, up from 200 in the previous three months, the data showed, and taking total closures in the first nine months to 674, compared with 661 during the same period last year. Cargill Inc.'s Black River Asset Management shut four units, while Armajaro Asset Management LLP also closed one of its funds. http://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2015/12/CI1030141218.PNG" Liquidations rose “as investor risk tolerance fell sharply, and energy commodities and equities posted sharp declines, resulting in net capital outflows, wider performance dispersion and meaningful differentiation between hedge funds,” Kenneth Heinz, president of HFR, said in a statement. The HFRI Fund Weighted Composite Index declined by more than 4% in the three months through September, its biggest quarterly drop in four years, as money managers were caught out by the devaluation of the Chinese yuan in August, which pummeled markets, and as oil and gold prices slumped.

Latest News

Investing for accountability: How to frame a values-driven conversation with clients
Investing for accountability: How to frame a values-driven conversation with clients

By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.

Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak
Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak

JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.

Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’
Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’

Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.

SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation
SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation

The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.

RIA moves: Wells Fargo pair joins &Partners in Virginia
RIA moves: Wells Fargo pair joins &Partners in Virginia

Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.