Initial Estimates of Summer Hedge Fund Outflows Incorrect

by: Steven Towns

MarketWatch reports data from TrimTabs Investment Research and the Barclay Group released in July estimating a $32 billion outflow of funds from the hedge fund industry was incorrect, according to an update and apology from the firms Wednesday. TrimTabs and Barclay now say there were $39.1B of inflows. For August, the companies estimate $8.9B of inflows into the $1.9 trillion hedge fund industry. TrimTabs and Barclay said the July estimate was calculated incorrectly, since adjustments were not made for funds of hedge funds, and funds were included in the estimate that reported performance updates but not of their assets under management. "The monthly hedge fund flow data is a new service and the changes we made to our methodology will ensure that our current and future estimates are as accurate as possible," commented TrimTabs CEO Charles Biderman. Concerns over hedge funds suffering huge redemptions over the summer were seemingly exaggerated. However, TrimTabs' and Barclay's latest estimates show August hedge fund inflows totaling $8.9B were the lowest since $7B in January.

Sources: MarketWatch
Commentary: A Paradigm Shift for Hedge Funds?Hedge Fund Replication Critiques And ResponsesA Quant August to Remember
Stocks/ETFs to watch: FIG, BX

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