Hedge Funds Redemptions

J.P. Morgan: redemptions are coming, but...


According to a new survey, investors plan to cash out of some hedge funds, but reinvest in others.

Most institutional investors in hedge funds expect to place redemption requests by year-end but plan to put the money into other hedge funds, according to a survey that J.P. Morgan’s capital introduction group conducted in November and released last week.

Of the 107 institutions that responded to the survey, representing approximately $260 billion in direct hedge fund allocations, the majority said they would redeem their investments in some funds, primarily because of disappointing performance, and redeploy it elsewhere in the industry. Most said they expected to put redeemed capital into global macro and equity long/short strategies.

"Our findings indicate