June marked the 13th consecutive monthly net outflow for the hedge fund industry. Investors removed an estimated net $13.12 billion from hedge funds in June.

Hedgies R Fuk Alert! June marked the 13th consecutive monthly net outflow for the hedge fund industry. Investors removed an estimated net $13.12 billion from hedge funds in June. From 1/1/2022-6/30/23, Investors have removed $157.98 billion from hedge funds.

Highlights:

• June 2023 witnessed the 13th straight month of net outflows in the hedge fund industry.
• June's redemptions were lighter compared to previous years, with an estimated net $13.12 billion taken out, though it still resulted in the industry's assets growing by $39.5 billion to approximately $3.439 trillion.
• Historically, June is a month where investors tend to withdraw assets, but the $13 billion removed this year was relatively less than the over $18 billion average of the last four years.
• The month saw increased investor activity and inflows were more broadly distributed across the industry even though redemptions surpassed inflows.
• Multi-strategy products faced some significant redemptions in June, though they maintained a net positive flow for the year.
• In contrast, managed futures products saw a return in allocations after two months of redemptions.
• Equity-focused strategies, including long/short equity and event-driven funds, experienced continued withdrawals, with over $30 billion removed in the first half of 2023.
• Despite global equity markets bouncing back, long/short equity products led in returns, while event-driven strategies had varied outcomes.

REMINDER:

109th Annual Report of the Board of Governors of the Federal Reserve System to Congress: "Based on a number of measures, leverage at hedge funds during 2022 stood above its historical average."

June 2023 Senior Credit Officer Opinion Survey: "For hedge funds, around 1/4 of dealers, on net, reported nonprice terms tightened somewhat on securities financing transactions & OTC derivatives over the past three months." Worsening liquidity and deteriorating counterparty strength cited as 'why'

TLDRS:

• June 2023 witnessed the 13th straight month of net outflows in the hedge fund industry, with an estimated net $13.12 billion taken out.
• May marked the 12th consecutive monthly net outflow for the hedge fund industry and was also the largest net outflow for the month of May since at least 2009.
• Investors removed an estimated net $9.96 billion from hedge funds in May.
• Investors pulled $11.57 billion out of hedge funds in April
• Investors removed an estimated net $3.32 billion from hedge funds in March.
• Investors removed an estimated net $4.83 billion from hedge funds in February.
• Investors removed an estimated net $4.18 billion from hedge funds in January.
• Investors removed an estimated net $111 billion from hedge funds in 2022.
• From 1/1/2022-6/30/23, Investors have removed $157.98 billion from hedge funds.
• Hedgies r fuk!

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