• The prospect of tax cuts, regulatory reform and fiscal stimulus by the incoming administration and Congress could make US equities and high yield bonds more attractive than other global risk assets over the next 12 months.

US policy changes could boost economic growth in 2017

Policy changes as a result of US elections could push economy into a higher growth in 2017, according to Northern Trust’s 2017 investment outlook.
  • Activist hedge funds turned in a positive performance of 3.62 per cent in November with year to date performance up 8.82 per cent.

Activist hedge funds lead performance league table for November

While investors continue to pull money from hedge funds, the industry is offering performance that may cause some investors to regret those decisions, according to the latest report from eVestment.
  • The November monthly advance reverses the decline from the prior month, represents the eighth monthly gain in the past nine months  and brings year to date performance to healthy 4.6 per cent.

Hedge fund performance hits highs in November as most strategies look to end year in positive territory

Hedge fund performance improved in November, as the election victory of Donald Trump drove expectations for renewed growth, infrastructure spending and reduced regulation.
  • Cautious optimism for accelerating US and global economic growth, improving corporate fundamentals, modest stock gains and higher yields on expectations of fiscal stimulus and regulatory policy easing.

Optimism wins out over concerns on Trump presidency impact on global markets in 2017

Over the short term Bank of America Merrill Lynch (BAML) global research is bullish on the eurozone, the UK, Japanese and Pacific Rim stocks, energy, precious metals and the US dollar.
  • Redemption pressure in October was the industry’s largest so far this year with 61 per cent of reporting funds estimated to have net outflow during the month.

Hedge funds continue to haemorrhage assets as allocations slow to almost every strategy

Investors redeemed an estimated net $14.2bn from hedge funds in October. Year to date (YTD) there has been a net $77.0bn removed from the industry, according to eVestment data.
  • The negative October performance was the industry’s first aggregate decline since January.

Hedge fund performance edges down in October but YTD brings in positive results

As hedge funds edged down by an average 0.76 per cent in October the industry average year to date (YTD) achieved a positive 3.70 per cent.
  • The level of industry redemptions in the third quarter were the largest of this current four quarter long outflow trend.

Hedge funds could face crisis as redemptions mount

Investors redeemed an estimated $10.3bn from hedge funds in September, bringing third quarter redemptions to $29.2bn, a level not seen since the first three months of 2009.
  • The largest redemptions during the year have been from big funds that underperformed last year. However, there has also been a lot of money removed from funds that produced decent returns in the first half of the year.

Money flows out of hedge funds as investors continue redemptions in second quarter

Investors redeemed a net $20.70bn from hedge funds in June, bringing the second quarter net flows to negative $10.68bn. The net flows in the first six months of the year were a negative $27.95bn, according to eVestment data.