Hedge fund industry lost US$125-billion worth of assets in 2022, data show

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Investors rethought putting their money into hedge funds, leading to a net outflow of $55-billion in assets, making it the largest capital flight from the industry since 2016, Hedge Fund Research said

Almost $125-billion worth of assets, from performance losses left the hedge fund industry in 2022, Hedge Fund Research data showed on Friday in the latest sign of the havoc that volatility wreaked on the industry last year.

Investors took $40.4-billion out of hedge funds that buy and sell stocks, which is also the strategy that posted the worst performance numbers, losing $112.5-billion. The only kind of hedge fund strategy that saw an increase of investor money was the $4.3-billion that flew into event-driven mergers and acquisition and credit funds.

“Strategies which have demonstrated their ability to navigate the current extreme market volatility are likely to attract capital,” said Kenneth J. Heinz, president of HFR.

Source: News Formal (newsformal.com)

 

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