Key Takeaways
- • SS&C GlobeOp's Forward Redemption Indicator for October 2026 came in at 1.62%, down from 2.02% in September and below its five-year average of 2.06%.
- • The reading is the lowest since April 2026, when the gauge hit an all-time low of 1.26%, and well below the 12-month high of 2.43% recorded in November 2025.
- • Most scheduled October outflows sit at the year-end window, with 0.99% of notices falling in the two-to-three-month bucket and 0.45% beyond three months.
- • SS&C chairman and CEO Bill Stone attributed investor stickiness to allocators using hedge funds to manage drawdowns and improve risk-adjusted returns, while flagging the U.S. midterm elections, rising inflation and AI buildout financing as sources of uncertainty.
- • The SS&C GlobeOp Hedge Fund Performance Index shows a flash estimate of -0.31% for the latest month, but is up 8.27% year to date and 12.99% over 12 months, all gross.
Summary
Investors are holding on to their hedge fund allocations, according to SS&C GlobeOp's latest Forward Redemption Indicator. The gauge, which measures forward redemption notices received from investors in hedge funds administered on SS&C's platform as a share of assets under administration at the start of the month, registered 1.62% for October 2026. That was down from 2.02% in September, below the five-year average of 2.06%, and the lowest reading since April 2026, when it hit an all-time low of 1.26%. The October figure also sits well below the 12-month high of 2.43% recorded in November 2025.
Because redemption notices are typically submitted 30 to 90 days before the redemption date, the indicator offers an early view of the withdrawal pipeline. By timing, October's notices broke down as 0.16% within one month, 0.02% in one to two months, 0.99% in two to three months and 0.45% beyond three months. Most of the scheduled outflow therefore falls around year-end, the period the report identifies as the next liquidity window.
SS&C chairman and chief executive Bill Stone linked the subdued reading to the macro backdrop, citing the U.S. midterm elections, rising inflation and the financing of the AI buildout as sources of uncertainty. He said allocators continue to favor hedge funds as a tool to manage drawdowns and improve risk-adjusted returns.
Performance has offered little reason for investors to exit. The SS&C GlobeOp Hedge Fund Performance Index posted a flash estimate of -0.31% for the latest month, but gained 8.27% year to date and 12.99% over the past 12 months, all gross. The firm's Capital Movement Index reached a 12-month high of 133.10 in September, up from a 12-month low of 127.76 in January, though it remains short of its all-time high of 150.77 set in September 2013.
The report carries standard caveats: notices can be cancelled, notice terms vary by fund, and SS&C's platform represents roughly 10% of estimated global hedge fund assets. Even so, a below-average reading heading into year-end suggests the industry enters the fourth quarter without a broad redemption wave, even as equity-focused managers contend with volatility in AI-linked stocks. The next release is due November 20, 2026.
Because redemption notices are typically submitted 30 to 90 days before the redemption date, the indicator offers an early view of the withdrawal pipeline. By timing, October's notices broke down as 0.16% within one month, 0.02% in one to two months, 0.99% in two to three months and 0.45% beyond three months. Most of the scheduled outflow therefore falls around year-end, the period the report identifies as the next liquidity window.
SS&C chairman and chief executive Bill Stone linked the subdued reading to the macro backdrop, citing the U.S. midterm elections, rising inflation and the financing of the AI buildout as sources of uncertainty. He said allocators continue to favor hedge funds as a tool to manage drawdowns and improve risk-adjusted returns.
Performance has offered little reason for investors to exit. The SS&C GlobeOp Hedge Fund Performance Index posted a flash estimate of -0.31% for the latest month, but gained 8.27% year to date and 12.99% over the past 12 months, all gross. The firm's Capital Movement Index reached a 12-month high of 133.10 in September, up from a 12-month low of 127.76 in January, though it remains short of its all-time high of 150.77 set in September 2013.
The report carries standard caveats: notices can be cancelled, notice terms vary by fund, and SS&C's platform represents roughly 10% of estimated global hedge fund assets. Even so, a below-average reading heading into year-end suggests the industry enters the fourth quarter without a broad redemption wave, even as equity-focused managers contend with volatility in AI-linked stocks. The next release is due November 20, 2026.
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