Q1 Hedge Fund Outflows
Hedge Fund Outflows Total $11 Billion in Q1 2010
Hedge funds recorded heavy outflows in the first quarter of 2010. Investors pulled out $11 billion, mainly from smaller hedge funds. The negative net flows for the first quarter of this year eroded the last quarter of 2009 inflows of $7.5 billion.
According to the report, Q1 2010 marked a polarization of money flows across hedge funds, with larger funds tending to post relatively larger and positive money flows, while smaller funds recorded relatively smaller and negative outflows.
On a four-quarter rolling-period basis, net money outflows from hedge funds amounted to $55.45 billion—an amount accounting for more than 15% of the sum of all negative quarterly money flows to the industry since first quarter 1994.
Despite the Q1 net outflows, global hedge fund assets are estimated to have increased quarter on quarter—from $1.34 trillion at the end of December 2009 to $1.39 trillion at the end of March 2010.
The bulk of net outflows in the first quarter were concentrated in strategies such as equity market-neutral, event-driven, managed futures, and multi-strategies.
Cumulative net inflows for the first quarter accounted for 0.91% of the beginning-of-quarter assets (it was 0.64% for the fourth quarter). Source
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