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February 22, 2024
PI Global Investments
Hedge Funds

SS&C reports lower hedge fund redemptions in January By Investing.com

© Reuters.

WINDSOR, Conn. – SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) has released its latest SS&C GlobeOp Forward Redemption Indicator, which shows a decline in hedge fund redemption notices for January 2023. The indicator fell to 2.03%, a drop from 3.64% in November 2023, aligning with the five-year average for this period.

The Forward Redemption Indicator is a measure of the withdrawal notices received from hedge funds administered by SS&C GlobeOp, expressed as a percentage of the assets under administration at the start of the month.

Bill Stone, Chairman and Chief Executive Officer of SS&C Technologies, noted that the current low level of redemptions suggests investors retain confidence in hedge fund managers’ ability to deliver favorable risk-adjusted returns, despite the broader economic context of central bank interest rate policies and efforts to tame inflation without triggering a recession.

Historically, the indicator has seen significant fluctuations, reaching an all-time high of 19.27% in November 2008. Conversely, the lowest recorded level was 1.48% in April 2022.

In addition to the Forward Redemption Indicator, SS&C GlobeOp also publishes the Hedge Fund Performance Index and the Capital Movement Index, both of which offer a snapshot of the hedge fund industry’s performance and capital flow trends. These indices are part of the SS&C GlobeOp Hedge Fund Index family, which aims to provide transparency in liquidity, investor sentiment, and fund performance.

InvestingPro Insights

As SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) showcases stability through its SS&C GlobeOp Forward Redemption Indicator, investors may find additional confidence in the company’s financial health and market position. InvestingPro Tips reveal that SSNC has consistently raised its dividend for 7 consecutive years, which could be a sign of the company’s financial robustness and commitment to shareholder returns. Moreover, the stock’s low price volatility suggests a stable investment option for those looking to avoid the market’s ups and downs.

Looking at InvestingPro Data, SS&C Technologies has a market capitalization of $15.25 billion and a Price/Earnings (P/E) ratio of 24.73, which aligns closely with the adjusted P/E for the last twelve months as of Q3 2023. This consistency indicates a stable earnings outlook. The company’s revenue growth of 3.64% over the same period reflects a steady increase in its business scale, while a gross profit margin of 47.8% underscores its ability to maintain profitability.

For those interested in deeper analysis, the InvestingPro platform lists additional tips to help investors make informed decisions. SS&C Technologies’ strong return over the last three months is another highlight, with a 24.49% price total return, showcasing the stock’s recent performance momentum. The company is anticipated to remain profitable this year, an expectation that could further solidify investor confidence.

With the special New Year sale, now is an opportune time to subscribe to InvestingPro+ and gain access to a wealth of financial data and insights. Use coupon code “SFY24” to get an additional 10% off a 2-year subscription, or “SFY241” to get an additional 10% off a 1-year subscription. The platform currently features a total of 5 additional InvestingPro Tips for SS&C Technologies, which could be instrumental in guiding your investment strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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