Hedge funds see estimated $43 billion of redemptions in September, TrimTabs says

By Paul A. Harris

St. Louis, Oct. 16 - Hedge funds saw an estimated $43 billion of redemptions in September, according to the Weekly Flow Report published by TrimTabs Investment Research.

TrimTabs said its preliminary estimates were based on a survey of 1,639 funds, 39% of the funds covered by BarclayHedge.

"Our estimates will likely be revised as more funds report their assets," TrimTabs told clients.

"Despite October's steep sell-off we do not believe the market has bottomed. While forced hedge fund selling might be complete for now, equity mutual funds are still experiencing major redemptions and corporate America is not announcing new buying," said TrimTabs CEO Charles Biderman.

The report noted that hedge funds lost 19.9% from June to October, "the worst performance since our records begin in 2000. We estimate 11 of 14 hedge fund sectors based upon differing strategies posted outflows in September."

Santa Rosa, Calif.-based TrimTabs is an independent research service that publishes detailed daily coverage of U.S. stock market liquidity, including mutual funds and exchange-traded funds, as well as weekly withheld income and employment tax collections.

TrimTabs' new TrimTabs Weekly Flow Report provides in-depth analysis of the flows of the investment vehicles it tracks, including mutual funds, exchange-traded funds, hedge funds, equity index futures and short interest.

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