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
Hedge fund redemptions in September were larger than normal. Investors removed an estimated $14.72bn from hedge funds in the month pushing third quarter net flows into negative territory with an estimated $5.71bn leaving the industry.