Hedge fund redemptions remain low but may rise next year, as indicated by SS&C GlobeOp’s Forward Redemption Indicator for December.

The SS&C GlobeOp Forward Redemption Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp on the SS&C GlobeOp platform, divided by the assets under administration at the beginning of the month for SS&C GlobeOp fund administration clients on the SS&C GlobeOp platform.

The December figure was 3.54%, hitting a high mark for 2024. Nevertheless, “The figure was lower than the 10-year average of 4.27% for the period, as investors assessed market opportunities and refined asset allocations for the upcoming year,” said SS&C Technologies Chairman and CEO Bill Stone.

“Following robust equity market performance over the past two years, signs indicate potential headwinds for economic conditions and return expectations,” Stone added in a statement. “This shifting landscape provides fertile ground for compelling hedge fund risk-adjusted returns, and we anticipate strong asset retention heading into 2025.”

Forward redemptions as a percentage of SS&C GlobeOp’s assets under administration on the SS&C GlobeOp platform have trended significantly lower since reaching a high of 19.27% in November 2008.

The redemption notifications essentially offer a glimpse of what 2025 holds as most hedge funds withdrawals take place 30 to 90 days after the notification is received.

The stats come as another hedge fund administrator, Citco, reported that cash inflows were set to end the year in positive territory with net new inflows through November at $500 million following $8.1 billion in redemptions.

According to hedge fund data provider PivotalPath, main hedge fund indices all notched positive gains in November, as managers across all strategy types profited from the post-election “Trump Bump” that saw U.S. stocks and the dollar soar. PivotalPath’s main industry-wide Hedge Fund Composite index rose 2.1% last month to drive year-to-date returns into double-digit territory, at 10.7%.