According to Reuters, “Investors pulled out around five times more cash from hedge funds in the month to October 1 than in the prior period, during one of the most turbulent few weeks for stock and bond prices since the 2008 financial crisis dampened appetite for risk.” The hedge fund industry is currently valued at $2 trillion.
Hedge Exits Rose to 3.17% in September
The GlobeOp Capital Movement Index tracks gross outflows from hedge funds. Hedge fund withdrawals had fallen to their lowest level since before the fall of the US financial systems, coming in at 0.58% in the month to September 1. Reuters reports that the decrease in withdrawals came as “investors swapped traditional ‘safe havens’ like the Swiss franc and gold in favour of portfolios expected to make money in all seasons.” It shows that gross exits hit 3.17% in the month ending October 1, which was the fourth time exits have risen higher than 3% this year. They totalled around $170 billion in assets, or approximately £109 billion. Inflows were still net positive. They came in at 0.31% “on the back of a 3.48 percent gross influx of capital.”