Hedge Funds Investors Withdraw Record $40 Billion in October

The industry lost another $115bn through poor performance, leaving total assets down 9 per cent at $1,560bn. Investors and managers said redemptions would be far bigger at the end of the year because many funds had long notice periods and only allowed quarterly withdrawals...

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He said Swiss private banks were leading the redemptions, as many of their clients had borrowed to invest in hedge funds, followed by automatic withdrawals by structured products. “At the other extreme people who are not redeeming are pension funds, and we have seen a trickle of inflows from them,” he said.