Hedge Funds
Hedge fund redemption notices drop to 1.62% for October, SS&C GlobeOp data show
The administrator's forward exit gauge fell from 2.02% in September and sits below its five-year average of 2.06%.
HedgeWeekly Hedge Fund Desk ·
Investors in hedge funds administered by SS&C GlobeOp lodged forward redemption notices worth 1.62% of assets for October, down from 2.02% in September, according to figures the administrator released on Wednesday. The October reading is below the indicator's five-year average of 2.06%.
The gauge takes the redemption notices received from investors and divides them by assets under administration at the start of the month. SS&C says its platform covers roughly 10% of estimated hedge fund industry assets. Notices usually arrive 30 to 90 days before the redemption date and can be cancelled. Over the past year the reading has ranged from 1.26% in April 2026, its lowest on record, to 2.43% in November 2025; the all-time peak was 19.27% in November 2008.
SS&C chairman and chief executive Bill Stone said allocators were still turning to hedge funds to limit drawdowns and lift risk-adjusted returns, citing the US midterm elections, rising inflation and the financing of the AI buildout as sources of uncertainty. Separate SS&C GlobeOp figures published last week showed hedge funds lost 0.31% in September, leaving them up 8.27% for the year, while the firm's capital movement index slipped 0.16 points to 132.94 on quarter-end rebalancing.
Why it matters: a below-average exit reading heading towards year-end points to steadier capital bases for managers, even after this month's sell-off in AI-linked stocks hit fundamental equity books, with Goldman Sachs prime data showing Asia-focused long-short funds down 6.8% in the first half of October. Allocators should treat the figure as a sentiment signal rather than a final flow count, since it covers only SS&C-administered funds and notices can be withdrawn.