Friday, October 21, 2016

Hedge Fund Investors Withdrew $28.2 Billion in Third Quarter


By Saijel Kishan and Simone Foxman

Hedge fund investors pulled $28.2 billion from the industry in the third quarter, the most since the aftermath of the global financial crisis, according to Hedge Fund Research Inc.

The net outflows, which amount to 0.9 percent of the industry, are the largest since the second quarter of 2009, the firm said Thursday. Investors redeemed $51.5 billion in the first nine months of the year, even as industry assets rose to a record $2.97 trillion, it said. 

Hedge funds have been under pressure from investors critical of high fees and uninspired performance. The Kentucky Retirement Systems’ investment committee voted Oct. 14 to exit hedge funds over a three-year period. Marc Levine, chairman of the Illinois State Board of Investment, said yesterday that the plan had moved two-thirds of its assets to passive management to reduce fees, causing it to withdraw about $1 billion from hedge funds. 

Click here for the full article. 

Source: Bloomberg (via The Empire Report)

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