Nell Mackenzie
LONDON (Reuters) – Investors pulled a net $7.8 billion from hedge funds in the second quarter amid volatile markets, industry data showed on Wednesday. Leaves many looking for safer places to store cash.
Large investors such as pension funds, asset managers and family offices have pulled more money from hedge funds than they have added, ending 18 According to data from Citco, a company that provides administrative services to the industry, their trend of increasing investments within a month.
Global hedge funds betting on the stock market pulled the most, with a loss of $6.4 billion, according to a Citco report, with net outflows. U.S. hedge funds were the biggest losers, followed by Asia and Europe.
Financial markets tumbled 2022 as investors fretted about central banks tightening money to combat soaring inflation and fears of a rapid economic slowdown. Volatility soared and stocks tumbled, causing huge losses for many hedge funds and forcing investors to sell riskier assets.
Mark Dowding, chief investment officer at BlueBay Asset Management who also invests in hedge funds, said on behalf of clients that he has seen money move to private equity since 2021 and private placement debt.
“However, as the economic cycle turns, it is not surprising that these investors may regret turning their money in that direction in the coming quarters,” he said.
Sharp (OTC: SHCAY) Down in Traditional Fixed Income, Equity Indices Will Attract Investors Return to the hedge fund, he told Reuters.
“There are more opportunities for hedge funds to shine in this environment,” he added.
