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Hedge Fund Investors Pull Money for First Time Since Early 2017

Melissa Karsh
Pedestrians pass in front of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, April 13, 2018. Photographer: Michael Nagle/Bloomberg

Investors pulled about $3 billion from hedge funds in the second quarter, the first quarterly outflow since early 2017.

Macro hedge funds led net outflows in the period, with $2.8 billion leaving the strategy, according to a report issued Thursday from Hedge Fund Research Inc. The outflows were offset by equity hedge funds, which saw inflows of $2.4 billion.

“Performance and capital flow trends shifted and evolved in 2Q18, as managers and investors adjusted to the impact of trade tariff financial market volatility and continued strong U.S. economic growth,” HFR President Kenneth Heinz said.

Total industry capital globally increased to a record $3.24 trillion in the quarter, with redemptions offset by performance gains, HFR said. Hedge funds returned 0.84 percent in the period.

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