(Bloomberg) -- Global hedge fund assets dropped below $3 trillion for the first time since April 2014, hit by client withdrawals and investment losses amid the March market rout, eVestment data show.
Investors pulled $24.1 billion more funds than they deposited last month, according to the data provider. Almost 80% of managed futures funds were hit by net redemptions, along with about 66% of macro hedge funds and 63% of multi-strategy hedge funds.
“The flows in March likely do not encapsulate the full extent of the impact of this current crisis,” eVestment wrote in a note dated Friday. “Rather, it appears some investors reacted in the short term with hasty redemptions, some likely followed through on planned redemptions, while new allocations slowed significantly.”
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The March withdrawals wiped out any fresh capital the industry took in the first two months of 2020, resulting in $8 billion of net outflows in the first quarter. Hedge funds around the world now oversee an estimated $2.95 trillion.
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