(Reuters) – Investors in 2022, according to a report by data provider Preqin, are battered by inflation, geopolitical tensions The situation and the horrors of the war in Ukraine.
Outflows are largest among $4.1 trillion hedge funds, Preqin says industry has been saw.
The decline is likely to continue as central banks continue to raise interest rates.
In September, central banks in North America and Europe raised interest rates to curb inflation. Meanwhile, a surge in UK government bond yields has hit UK pension funds, forcing some to seek emergency funding from the companies in which they manage their money. When yields rose, bond prices fell, the report said.
Global uncertainty “has put significant pressure on markets, forcing investors to re-examine their allocations,” the report said.
Dismal returns in the second quarter also did not encourage investors to stick around. Hedge funds focused on North America saw their returns fall by 8.82%, while European hedge funds fared slightly better, down 5.2020 %. Returns for funds focused on Asia Pacific fell 4.45%.
Nonetheless, most of the outflows came from European hedge funds, with Q2 revenue of 28 $400 million and 55.2 2022 Total $1 billion for the first half.
Long-term performance trends in Europe also lag their peers in the US and Asia Pacific (APAC) regions.
The past five years include 90 In the first half, fund returns focused on the US and Asia Pacific8. 55% and 6.55%, respectively, but Europe-focused hedge funds manage only 3.5%, the report said.
Now that market stress has returned, hedge funds are ready to do what they can, especially those using strategies that use macroeconomic indicators to trade market trends, the report said.