Hedge fund assets under management plummeted by $88 billion last year, according to research by eVestment, a firm that provides software to institutional investors.
Investors redeemed $35.3 billion more than they invested in the industry — the second-biggest outflow since 2009, ranking behind the triple-digit net redemptions seen in 2016.
The vast majority of the outflows came during the year’s volatile fourth quarter, with investors redeeming a net $19.64 billion in December alone, according to eVestment. The combination of investment losses and net outflows resulted in a $87.7 billion decline in industry assets — the largest since 2008 — to about $3.19 trillion.
The hedge fund firms that managed to attract money were those with the highest returns in 2017, eVestment’s data show. Among Americas-focused hedge funds larger than $1 billion, 2017 returns of greater than 5 percent translated into net inflows of $10.94 billion. Billion-dollar-plus hedge funds targeting Europe, emerging markets, and global markets were also rewarded for 2017 gains.
