Posted on 10/19/2008 7:07:09 AM PDT by TigerLikesRooster
Hedge funds' assets off $210 billion in third quarter
Poor returns spur record $31 billion redemptions, industry researcher says
By Alistair Barr, MarketWatch
Last update: 11:36 a.m. EDT Oct. 17, 2008
Comments: 46
SAN FRANCISCO (MarketWatch) -- Hedge funds saw a record $210 billion drop in assets under management during the third quarter as investors redeemed an unprecedented amount of money from the industry after poor performance, according to a survey released Friday.
"With losses continuing through October, it appears that 2008 will be the worst year on record for both hedge-fund performance and industry asset flows," said Kenneth Heinz, president of Hedge Fund Research, which produced the report.
Hedge funds oversaw $1.72 trillion at the end of September, down from $1.93 trillion at the end of the second quarter, Hedge Fund Research said. That's the largest quarterly decline on record, according to the firm.
Net capital redemptions totaled $31 billion in the quarter, also a record, the firm added.
Withdrawals came during a period of dismal performance for the funds. Hedge Fund Research's main index lost nearly 8.9% in the third quarter, leaving it down more than 10% so far this year.
(Excerpt) Read more at marketwatch.com ...
I guess we have not seen the bottom of hedge fund unwinding yet.
Ping!
Glenn Beck says they are selling their Gold. I do not want to sound vindictive, but I hope Harvard's Endowment which is run like a hedge fund takes it in the shorts... BTW.... I have a liberal friend always reading the WSJ, he saw the hedge-fund, derivative mortgage mess happening his past summer (or was it the summer before?) and was on a screed to warn people.
This has affected Boone Pickens who loved hedge funds and maybe he will take his stupid ads off the air.
Thos are end of September numbers. By 15 October they went down a lot more.
As recent as past month, there were articles lauding Harvard Endowment's strategy to produce high return, and they said some hedge funds are emulating it.
If Harvard Endowment goes down, it will be another big news. Its potential problem has not attracted serious media attention yet.
Could we see it and other Ivy Endowment going the way of some local and state government such as California and Massachusetts?
“If Harvard Endowment goes down, it will be another big news.”
My God, we’ll have to bail them out. Cut State Universities, we can’t let our main liberal training ground flounder.
I guess Crimson is the appropriate color for Harvard.
They are dumping their gold and silver positions bigtime. Silver is under $10 an ouce on the COMEX right now, but if you actually want an ounce of silver in your hand, be prepared to pay upwards of $17. Coin dealers are out of 100 oz bars, and have been for weeks- but the hedge funds’ activities are keeping the paper price much lower.
It can’t be sustained however. Eventually it will fully unwind, then watch for a huge snap upward.
The famous quote is that Harvard University is simply the non-profit cover for Harvard's endowment which is run as a hedge fund
The endowment goes up every year. I'll bet it decreases this year. LOLOLOL
This Tuesday is payday for the Hedge funds. The settlement of Lehman deals. I can only guess the insurance companies will take a bath.
It is very unlikely the hedge funds have any physical gold. It is much more likely that hedge funds have gold stocks. I agree they are probably dumping their gold stocks and miner stocks, but I just wanted to clarify that it is very unlikely they hold physical gold. First, it is too difficult to handle and second, physical gold is still in very short supply on the market. If they were dumping physical gold we would see some of it coming to the big dealers. We don't.
Roubini recently predicted that hedge fund deleveraging would be the next big wave in the current financial crisis. Hedge fund deleveraging in earnest is just beginning. Lots of hedge funds are going to become extinct. They are falling like flies.
You beat me too it. That’s what I get for always posting right away rather than reading the entire thread. Occupational hazard... Sorry for treading on your toes.
When you see vacant storefronts in Greenwich Connecticut you;ll know the hedge funds are really getting massacred and put out of business
Greenwich, Connecticut - Wikipedia, the free encyclopediaIt is home to many hedge funds and other financial service companies that have left ... For more information, see History of Greenwich, Connecticut. ...
en.wikipedia.org/wiki/Greenwich_CT - 101k - Cached - Similar pages
Lack of cheap money is killing hedge funds. They need that cheap money to place their over leveraged bets. Banks won’t lend to hedgers.... too risky. And clients exit because they fear their favorite hedge fund may go bust
Hedge funds are one of the main secrets behind the rush to bail out bad management and judgement.
They are apparently selling their gold shares and GLD which has driven down that so called safety investment the past few weeks.
Thanks for this great link:
The Hedge Fund Implode-O-Meter - tracking the hedge fund implosion ...
http://www.nypost.com/seven/10182008/news/regionalnews/fund_big_to_traders__thanks__suckers__134132.htm
Hmmmmmm.....low-hanging fruit, i.e. idiots whose parents paid for prep school, Yale and then the Harvard MBA, rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government.
Paulson, Bernanke, Greenspan, Fuld, Sullivan and the rest of them aren't gonna like that (snicker).
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