Funds of Hedge Funds Shrink by 11% as Losses Spur Redemptions
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Assets fell more than $100 billion in 12 months through March
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Dominance as allocators ‘waning steadily,’ eVestment finds
Funds of hedge funds lost more than $100 billion in 12 months because of outflows and poor performance, according to a new report.
Clients pulled $50.3 billion over the four quarters through March, while managers posted $51.5 billion in investments losses, research firm eVestment said Friday after analyzing data from more than 2,500 funds. Assets in the sector shrank 11 percent to $841.6 billion, the lowest since June 2009.
“Their dominance as allocators to hedge funds has been waning steadily since their heyday prior to the financial crisis and we do not currently see any evidence of this trend abating,” eVestment wrote. “Although the industry is certainly far from lost, we have yet to hit the floor on support levels for funds of hedge funds.”…
Funds of Hedge Funds Shrink by 11% as Losses Spur Redemptions
