Investors Pull $43B From Hedge Funds In Sept.

Oct 16 2008 | 2:39am ET

No news is good news for hedge funds these days, but everyday brings more news. The latest instance of unpleasant information for the industry are the enormous withdrawals suffered by hedge funds in September.

Hedge fund indices have already shown last month to be among the worst ever in terms of performance; the latest TrimTabs Investment Research data shows it was just as bad—if not worse—in terms of clients fleeing. Investors yanked at least $43 billion from U.S. hedge funds in September, and TrimTabs says worse is still to come.

September’s withdrawals are “the beginning of what we expect to be a series of outflows for the remainder of the year,” TrimTabs’ Conrad Gunn told the Financial Times. “We expect October outflows to be larger.”

Of course, it isn’t totally clear just how bad September was yet. Gunn, the firm’s chief operating officer, said the $43 billion figure was preliminary, and is likely to grow as more funds report their outflows.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR