September Outflows Top $30 Billion

Nov 9 2011 | 11:29am ET

After months of providing impressive inflows, pushing the hedge fund industry to asset levels not seen since before the credit crisis, investors have suddenly abandoned hedge funds in a big way.

That investors pulled money from hedge funds in September, at the end of a miserable third quarter for the industry, is already well-known. But new data from Société Générale show that hedge funds took a much bigger hit than previously reported.

Hedge funds lost some $33 billion in assets to net outflows in September, the numbers show. Earlier estimates from other data providers had outflows of less than $20 billion.

All strategies lost money to investor redemptions in September, "even multi-strategy, the best performing hedge fund category year-to-date," SocGen's Alain Bokobza told Financial News.

Multi-strategy funds lost 5% of their assets, or $17 billion, to outflows on the month.


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