Hedge Fund Redemption Notices Drop to 1.35% in July

SS&C GlobeOp’s Forward Redemption Indicator fell to 1.35% in July from 1.72% in June, the lowest reading since January 2025. The decline occurred as investors maintained hedge fund allocations despite reversals in AI and semiconductor momentum trades and higher tensions in the Middle East.

The indicator measures redemption notices received from investors in hedge funds administered by SS&C GlobeOp as a percentage of assets under administration at the start of the month. The July reading compares with 1.32% in January 2025 and is based on actual notifications received for that month.

Redemption notices are typically submitted 30 to 90 days before the requested redemption date and can be canceled. Individual fund terms governing notices vary, so the indicator reflects potential future outflows rather than completed withdrawals.

According to Bill Stone, chairman and chief executive of SS&C Technologies, allocators were maintaining their hedge fund positions. He added that stable redemption trends reflected continued support for hedge funds’ uncorrelated returns and risk-adjusted performance in investor portfolios.

Advance notification levels remain far below the record 19.27% reached in November 2008 during the global financial crisis.

Administrators and allocators use the Forward Redemption Indicator as an early signal of possible redemption pressure on funds administered on the SS&C GlobeOp platform.