European hedge fund industy contracts for 6th straight quarter

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.

Bloomberg News reports that 62 hedge funds were shut in the three months through June compared with 54 that started, according to data compiled by Singapore-based Eurekahedge.

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.

To access the complete Bloomberg News article hit the link below:

Europe Hedge Funds Shrink and Shutter as Turmoil Hurts Returns

Pimco Names Man Group’s Chief Emmanuel Roman as Its New CEO

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts