Hedge funds 4Q outflow largest since ‘94

Investors yanked about $147 billion from hedge funds worldwide in the fourth quarter of 2008, a 689% decline from the third quarter.
MAR 03, 2009
Investors yanked about $147 billion from hedge funds worldwide in the fourth quarter of 2008, a 689% decline from the third quarter, according to data released today by Lipper Inc. It was the largest net outflow since 1994, according to the New York-based research firm. The industry ended the year with $1.29 trillion in assets. For the full year, the industry had a total net outflow of $158.9 billion. All hedge fund sub-strategy categories posted outflows in the fourth quarter, according to Lipper. Among the largest outflows were in long/short equity, which shed $42.52 billion; managed futures, which lost $23.95 billion; and event-driven strategies, which had $22.27 billion in outflows.

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