A $30 Billion Exodus Puts Hedge Funds for Masses to the Test
- Liquid alternative funds seeing worst redemptions since 2008
- Clients pull after several European funds faced troubles
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They’re the hedge funds for the masses, but now the masses want out.
Money pools that offer hedge-fund strategies usually reserved for sophisticated investors to regular folks are seeing an unprecedented flight of capital after several supposedly liquid funds ran into trouble in Europe. Investors have fled these so-called liquid alternative funds, pulling more than $30 billion in the first half, the most since the 2008 financial crisis, according to data provider Eurekahedge.