Hedge funds decline 0.31% in September as investor flows turn negative – SS&C GlobeOp

Hedge funds saw a 0.31% decline in September 2026, according to SS&C GlobeOp. Net investor flows turned negative, falling 0.16% in October, the index provider reported. Despite this, hedge funds have still managed to be up 8.27% year-to-date and 12.99% over the past 12 months, based on the asset-weighted performance index. This index tracks the funds managed through the SS&C GlobeOp platform.

The SS&C GlobeOp Capital Movement Index dropped to 132.94 in October, indicating net redemptions aligning with quarter-end portfolio rebalancing. The index is still 5.45 points above its level from a year ago. SS&C Technologies Chairman and CEO Bill Stone warned that investors face risks as they approach the final quarter of 2026.

These include the US midterm elections, possible further interest rate hikes, geopolitical tensions, and volatile energy prices. Stone maintained that hedge funds continue to be an appealing choice for investors aiming to reduce losses and enhance risk-adjusted returns during periods of market uncertainty. The SS&C GlobeOp Performance Index gauges the total returns of the hedge funds managed on its platform, while the Capital Movement Index observes actual investor subscriptions and redemptions relative to assets under management.

The Forward Redemption Indicator indicates expected withdrawals, providing insight into investor liquidity demands. With its administration platform covering about 10% of the estimated global hedge fund assets, SS&C GlobeOp's indices include various investment strategies. The next update of the Capital Movement Index is set for November 12, 2026.