GlobeOp Financial Services, the fund administrator has revealed that its Capital Movement Index was positive 2.29% in May and reached a 9-month high, compared to last months 0.05% net outflows.
The new Capital Movement Index data illustrates that investors are putting their trust back in hedge fund managers and looking to them to profit from volatile markets.
After last months pause, investors continued their steady return to the hedge fund market, said Hans Hufschmid, chief executive officer, GlobeOp Financial Services.
The GlobeOp Capital Movement Index represents the monthly net of subscriptions to and redemptions from hedge funds administered by GlobeOp, divided by the total assets under administration (AuA) for GlobeOps fund administration clients. Redemptions were slightly greater than subscriptions for the month of April.
This brings the Capital Movement Index to 132.48 points, 13.33 points away from the all time high in September 2008.
Cumulatively, the GlobeOp Capital Movement Index for May 2011 stands at 132.48 points, an increase of 2.29 points over April 2011. The Index was based at 100 on December 31, 2005 and has advanced 16.70 points over the past 12 months. The next publication date is June 10th, 2011.
GlobeOp administers $167 billion of assets, which represents approximately 8-10% of the total global hedge fund industry.