Bloomberg News reports that investors pulled a net $15bn between January and March, reducing assets under management to $2.86tril from $2.9tril, Hedge Fund Research said Wednesday. The last time outflows were higher was in the second quarter of 2009, when $43bn was redeemed.
Clients are redeeming after many hedge funds failed to protect them during market turmoil in the second half of last year and again at the start of 2016. Managers including John Paulson, Chase Coleman, Andreas Halvorsen, Ray Dalio and Bill Ackman posted losses in some of their funds last quarter, even as global stocks edged out a small gain with dividends reinvested.
Hedge funds following macro economic trends to bet across asset classes suffered $7.3bn in outflows, while those betting on corporate events saw about $8.35bn pulled out, the data showed. Fund managers speculating on the success or failure of mergers and acquisitions attracted $400m.
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