Asia Hedge Fund Outflows Highest in Seven Years, eVestment Says

  • March redemptions from Asia-based funds neared $2 billion
  • Investors pulled $2.9 billion from Asia funds in first quarter

Investors pulled $2.9 billion from Asia-based hedge funds in the first quarter, the highest outflows in seven years, according to data from eVestment.

March redemptions from managers in the region approached $2 billion, according to an e-mailed statement from the Atlanta, Georgia-based data provider. China-focused funds lost $337.5 million to withdrawals during the month, it added.

"One clear theme from emerging markets in March was that losses and volatility from China-focused products have caused investor sentiment for funds investing in the country to reach the lowest point since losses emerged in the second half of 2015,” according to the statement.

The China redemptions came even as the nation’s stocks rebounded in March, helping Asia-focused hedge funds including those managed by APS Asset Management, Springs Capital and Pine River Capital Management post positive returns.

Investors worldwide are pulling money out of hedge funds as wild swings in stocks and commodities markets damped returns of some of the best-known managers, including John Paulson, Ray Dalio and Bill Ackman. Clients globally pulled a net $15 billion between January and March, reducing assets under management to $2.86 trillion from $2.9 trillion, Chicago-based Hedge Fund Research Inc. said earlier this month.

Investors are pulling out as Asia’s hedge funds on average dropped 5.5 percent in the first two months of 2016, marking the worst start to the year since Eurekahedge Pte began to compile data in 2000. They rose 3.2 percent in March, paring the year-to-date loss to 2.5 percent.

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