Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money managers to shutter.
A total of 484 hedge funds have closed since the start of 2015, compared with 415 starts, shrinking the industry to fewer than 4,000 funds, the data shows.
Hedge funds have struggled to navigate markets roiled by wide stock swings, a commodity selloff and divergent monetary policies this year, suffering billions of dollars in capital outflows. The Eurekahedge European Hedge Fund Index lost almost 3% this year through June, its worst first half since the measure was first compiled in 1999, increasing redemption pressure on regional hedge funds.
Investors pulled $4.4bn out of European hedge funds over the last two months, Eurekahedge said. The industry managed $538bn at the end of June.
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