SANTA ROSA, Calif. — Hedge funds overall experienced outflows of $32 billion in July, according to data from the TrimTabs/Barclay Hedge Fund Report. The report is the first from a partnership between BarclayHedge, which provides monthly hedge fund asset information, and TrimTabs Investment Research, which analyzes the data, said Sol Waksman, president of BarclayHedge. TrimTabs researchers estimated hedge funds of funds had outflows of $55 billion in July while hedge funds had inflows of $23 billion.
Because most hedge funds require between 30 and 60 days’ redemption notice, Charles Biderman, TrimTabs CEO, said he concluded that hedge funds of funds’ redemption requests at the end of May were reflected in July asset figures. Mr. Biderman said: “It is likely the fund-of-hedge-fund requests for redemptions (from underlying hedge funds in their portfolios) triggered the hedge fund unwinding that knocked more than $2 trillion off the market cap of the U.S. stock market and probably another $2 trillion off the market cap of non-U.S. markets.”
Circle T founder Tobias found dead
Seth Tobias, managing partner and the founder of hedge fund manager Circle T Partners, was found dead in the swimming pool of his Jupiter, Fla., home on Sept. 4, said Jupiter police Sgt. Scott Pascarella. Mr. Tobias was 44. The cause of death has not been determined, pending receipt of the medical examiner’s and toxicology reports, but Mr. Pascarella said foul play is not suspected.
Circle T has about $200 million under management, according to Spence Tobias, Mr. Tobias’ brother, who is a portfolio manager at the firm. Seth Tobias also was a frequent contributor on various market-oriented television news shows. Spence Tobias said the funeral service for his brother will be private.
U.K. commingled funds gain 4.6%
LONDON — Twenty U.K.-based commingled hedge funds of funds had a median return of 4.6% net of fees in the second quarter, according to data from BNY Mellon’s London-based asset servicing unit. The median of those funds of funds outperformed U.K. equity (3.8%), U.K. real estate (1.8%) and U.K. bond (-2.4%) pooled funds, said Daniel Hall, BNY Mellon Asset Servicing’s publications and statistics manager. For the three years ended June 30, however, the 9.8% median annualized return of the BNY Mellon universe lagged the annualized median returns of U.K. equity (18.2%) and real estate (16.3%) commingled funds.
