Hedge funds suffered another month of net redemptions. But
the magnitude of dissatisfaction is possibly declining.
Investors yanked out $5.2 billion in January 2017, according to
data tracker eVestment. This is less than the $19.3 billion
investors redeemed from hedge funds in January 2016.
Altogether, 49 percent of hedge funds reported positive inflows
last month, according to the data firm’s report.
At the end of January, total hedge fund assets stood at $3.033
trillion. Little surprise, the struggling managed futures funds
suffered the largest redemptions last month, amounting to $3.67
billion. Over the past three months, $13.19 billion has been
removed from the strategy. Other strategies that suffered
sizable redemptions in January include event-driven and
relative-value credit funds. On the other hand, multi-strategy
funds enjoyed the largest amount of inflows, amounting to $3.80
billion. This brings the most recent three-month total to $4.31
Starboard Value sold about 650,000 shares of The
Brink’s Co., reducing its stake to 7.9 percent.
The activist started investing in the security company in early
2015. In early 2016 Brink’s announced an agreement
with Starboard in which the company named three new directors
to its nine-member board, including Peter Feld,
Starboard’s research director. In addition,
Brink’s chairman, president, and CEO Thomas
Schievelbein announced his retirement. The stock has been a
homerun for Starboard. It gained nearly 40 percent last year
and is up another 26 percent this year already.
Blue Harbour Group cuts its stake in Agco Corporation to
4.8 percent. As a result, the activist hedge fund firm no
longer needs to file timely updates when it sells additional
shares. The activist initially publicly disclosed its position
in the farm equipment manufacturer in June 2015. The stock is
up about 20 percent since then.
Shares of hedge fund favorite Restoration Hardware surged
nearly 25 percent, to close at $31.35, after the high-end home
furnishings company reported strong quarterly results and
announced a stock buyback. At year-end,
Balyasny Asset Management owned more than 1.8 million
shares, making it the sixth largest shareholder. At the end of
January, it boosted the stake to 2.2 million shares, or 5.4
percent of the total outstanding.
Citadel was the tenth largest shareholder at the end of the