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Funds of Hedge Funds Shrink by 11% as Losses Spur Redemptions

  • Assets fell more than $100 billion in 12 months through March
  • Dominance as allocators ‘waning steadily,’ eVestment finds

Funds of hedge funds lost more than $100 billion in 12 months because of outflows and poor performance, according to a new report.

Clients pulled $50.3 billion over the four quarters through March, while managers posted $51.5 billion in investments losses, research firm eVestment said Friday after analyzing data from more than 2,500 funds. Assets in the sector shrank 11 percent to $841.6 billion, the lowest since June 2009.