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.
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