LONDON (Reuters) - Investors pumped money into the $3 trillion hedge fund industry in December, data from the world’s second-biggest hedge fund administrator showed on Thursday, seeking to capitalise on an increase in market volatility.
The SS&C GlobeOp Capital Movement Index, which calculates monthly hedge fund subscriptions minus redemptions at the start of each month, rose 0.83 percent in December, the largest December gain since 2011.
“This favourable reading continues the trend of recent months, indicating that the hedge fund industry is benefitting from heightened market volatility,” Bill Stone, chairman and chief executive of SS&C Technologies, said in a statement.
The S&P 500 took its biggest drop since late September last Thursday as European Central Bank stimulus fell short of market expectations.
The SS&C GlobeOp Capital Movement Index represents the monthly net of hedge fund subscriptions and redemptions administered by SS&C GlobeOp on the SS&C GlobeOp platform.
Reporting by Simon Jessop; Editing by Ruth Pitchford