Hedge fund redemptions rose significantly in December. Investors were nervous about stock market volatility, global economic uncertainty, major commodity price downturns and other economic factors.
Forty-two per cent of hedge fund managers were able to raise new capital in 2018. However, the majority reported redemptions and/or lost money in 2018, one of the most challenging years for the industry in a decade, according to eVestment.
Hedge funds lost an estimated $6.43bn in November as investors pulled money. Year to date (YTD) hedge fund outflows stand at $14.52bn, according to eVestment
Emerging markets hedge funds continued their run of poor performance into the third quarter of 2018 as global and emerging market regional equities, currencies and hedge funds all posted sharp declines.
Investors continue to have confidence in hedge fund strategies, starting the last quarter of this year with record inflows, according to Hedge Fund Research (HFR).