Net outflows from hedge funds recorded a six-month high this month, according to Reuters, citing data from the SS&C GlobeOp Capital Movement Index.
The report said net redemptions (subscriptions less redemptions) fell 2.7% at the start of this month, its highest since January’s 3.3% decline.
The index, which calculates monthly hedge fund subscriptions less redemptions at the start of each month, accounts for around 10% of assets invested in hedge funds worldwide, Reuters said.
Worries that Greece may exit from the eurozone after the country defaulted on its debt with the IMF at the end of June, coupled with a slowing Chinese economy and the recent downturn in its stock market, prompted investors to trim their investment portfolios. That included their holdings in hedge funds.
China focused hedge funds, in fact, were the worst performer in June among the indixes tracked by HFR. The China hedge fund index fell 3.52% last month, its worst monthly performance in two years as the country’s equities market roiled from a massive selloff.
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