Hedge funds record biggest outflows of year in April as investors pull $12 billion

Methanex Corp

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Based in Canada

Company profile

Methanex Corporation is a Canada-based producer and supplier of methanol. The Company supplies methanol to international markets in North America, Asia Pacific, Europe and South America. The Company’s methanol production sites are located in New Zealand, the United States, Trinidad, Chile, Egypt, and Canada. Its New Zealand production site supplies methanol primarily to customers in Asia Pacific. It has three plants in New Zealand, Motunui 1, Motunui 2 and Waitara Valley. Its two plants in Geismar serves customers in methanol markets. It has two plants in Trinidad, Titan and Atlas that supplies methanol to various methanol markets. Its Chile production site supplies methanol to customers in South America and Asia Pacific having two plants in Chile, Chile I and Chile IV. Its Egypt plant is located on the Mediterranean Sea and primarily supplies methanol to the domestic and European market. Its plant in Medicine Hat, Alberta, supplies methanol to customers in North America.

Hedge funds record biggest outflows of year in April as investors pull $12 billion

2:26 pm ET May 25, 2023 (MarketWatch) Print

By Joy Wiltermuth

Flows into fixed-income hedge funds continue

Investors pulled $11.57 billion out of hedge funds in April, marking the sector's biggest month of fund outflows of the year, according to Nasdaq eVestment.

The exodus was concentrated in equity hedged funds, where $8.94 billion of funds were removed in April, adding to the sector's $19.4 billion of outflows so far in 2023.

"Probably the most interesting point about this April's aggregate flow data is that it was another month where redemptions were not concentrated among few, butrelatively spread across many," the eVestment report said.

"To put it simply, April's data indicated elevated and broad-based redemptions."

The Dow Jones Industrial Average was lower Thursday as investors focused on U.S. debt-ceiling talks in Congress coming down the the wire on the need to raise the government's borrowing limit, or risk completely draining its coffers, potentially as early as June 1. It was off 1.2% for the year, according to FactSet.

The S&P 500 index has been largely stuck in a holding pattern below 4,200 for weeks, but still was up 8.2% on the year through Thursday. Optimism around AI technologies were giving a 1.8% boost to the Nasdaq Composite Index on Thursday, with shares of Nvidia Corp.(NVDA) surging 26% Thursday. The Nasdaq was up 21.3% on the year.

Bucking the outflow trend, hedge funds focused on fixed-income and credit strategies collectively saw $1.7 billion of inflows in April, boosting their flows this year by $5 billion so far, according to eVestment.

The Federal Reserve's rapid pace of rate hikes over roughly the past 12 months has led to tighter credit and higher bond yields .

Hedge-fund assets under management were pegged at $3.42 trillion, according to eVestment.

-Joy Wiltermuth

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 25, 2023 14:26 ET (18:26 GMT)

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Hedge funds record biggest outflows of year in April as investors pull $12 billion