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Hedge funds post largest asset declines since ‘08

By NexChange
Hedge Funds

Investors may have kind been to hedge funds during the third quarter, but apparently, the market was just too much for them:
“Total global hedge fund capital posted the largest decline since the Financial Crisis in the third quarter, as global financial market volatility surged on uncertainty over US interest rates, China and M&A transactions. Estimated hedge fund capital declined by $95 billion across all strategy areas to end the quarter at $2.87 trillion, as new investor capital inflows only partially offset performance-based declines.”
The quarterly asset decline is supposedly the first since the second quarter of 2012 and the largest since fourth quarter of 2008, according to HFR. Inflows remained strong though, with three of the four main hedge fund strategies boasting net capital inflows for the quarter. Event-driven funds for example saw $5.4 billion in inflows while relative value funds punched in $2.9 billion. Macro funds however experienced $5.1 billion in outflows, largely due to the Fed cooking the emerging markets and China's slowdown hurting commodities.
Photo: Lucas Stanley

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