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

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of