Hedge Fund Stability Shines as SS&C Redemption Indicator Hits Multi-Year Low

The SS&C GlobeOp Forward Redemption Indicator for April 2025 dropped to 1.85%, marking its lowest level since April 2022 and signaling a profound shift in investor confidence toward hedge funds amid global economic turbulence. This decline from March’s 2.42% and a near-identical reading to April 2024’s 1.86% underscores a sustained stabilization in fund redemptions, far below the 10-year average of 2.95%. The metric, which tracks redemption notices as a percentage of assets under administration (AuA), now sits at its weakest point in over a decade—well above crisis-era lows but a stark contrast to the 3.54% peak in December 2024.

A Barometer of Resilience

The indicator’s design provides a forward-looking snapshot of investor intent, as notices are submitted 30–90 days before redemptions occur. SS&C’s platform, which administers ~10% of global hedge fund assets, aggregates anonymized data free from selection bias, offering a uniquely transparent view of industry trends. CEO Bill Stone emphasized this stability reflects hedge funds’ ability to deliver “compelling risk-adjusted returns” despite “abrupt tariff policy changes, historic volatility, and a slowing economy.”

Defying Headwinds with Data

April’s results come amid mixed performance metrics for hedge funds. The SS&C Hedge Fund Performance Index dipped to -1.61% in April, but year-to-date returns remain positive at 0.52%, while trailing 12-month returns hit 5.29%. Meanwhile, the Capital Movement Index rose 0.24% to 124.79, defying April’s historical tendency for outflows. These figures suggest investors are prioritizing long-term gains over short-term volatility, a trend Stone attributes to hedge funds’ “uncorrelated return profiles” and robust risk management.

Historical Context Reinforces Optimism

The April 2025 reading is now 89 basis points below the 10-year average, and a full 169 basis points lower than the November 2008 crisis peak of 19.27%. Even in April 2022—the previous low—the indicator sat at 1.48%, a mere 37 basis points below current levels. This proximity to all-time lows, while not surpassing them, signals a structural shift in investor behavior: fewer knee-jerk exits despite macro uncertainty.

Implications for Investors

For SS&C Technologies (SSNC), the data is a tailwind. Stable AuA levels directly support its fee-based revenue, which relies on administered assets. With redemptions at 12-month lows, the company’s fund administration business—its core revenue driver—appears insulated against market swings. For hedge fund investors, the numbers validate a strategy of patience: while monthly returns may fluctuate, the +5.29% LTM performance highlights the sector’s long-term value proposition.

Conclusion: A New Era of Stability

The April 2025 Forward Redemption Indicator at 1.85% is a milestone for both SS&C and the hedge fund industry. It reflects a hard-won equilibrium where investors remain committed despite macroeconomic headwinds, underpinned by hedge funds’ ability to navigate volatility. With redemptions now 40% lower than the 2008 crisis peak, and AuA retention outperforming all but the most stable asset classes, the data suggests a maturing of the alternative investment landscape. For investors, this stability is a signal: in uncertain times, the best-performing funds are those that prioritize risk management—and SS&C’s metrics prove it.