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Hedge Funds Brace for $20 Billion of Redemptions, Citco Says

  • Only 40% of hedge funds globally made money in first quarter
  • Return gap between top and bottom performers widened

Hedge funds globally are bracing for nearly $20 billion of investor redemptions for the rest of 2022, even after seeing a net inflow in the first quarter, according to a report from Citco Group Ltd.

Investors are already scheduled to withdraw $13.5 billion from the industry in the current quarter and another $6.3 billion the rest of the year, said the fund administrator. While the numbers are smaller than the first-quarter redemptions of almost $39 billion, they can change significantly in either direction, depending on fund terms and investor actions.