In Q1, 2020, investors withdrew a net US$33 billion from hedge funds,
the highest level in more than 10 years. According to a report released
by Hedge Fund Research Inc. on Wednesday, this is the largest quarterly
outflow of funds since investors withdrew approximately US$42 billion in
the second quarter of 2009. To put things in perspective, investors
withdrew US$43.1 billion throughout the whole year of 2019.To get more
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Renaissance Technology, an IT-driven hedge fund founded by Jim Simons,
recorded one of the worst quarterly performances. Investors said the
company's Renaissance Institutional Equity Fund fell nearly 18% in the
first three months of this year, while the Renaissance Institutional
Diversified Alpha Fund fell 13%. According to investors, Dario ’s
Bridgewater Fund also missed in the market sell-off, and its flagship
fund Pure Alpha shrank by about a fifth in asset value in the first
quarter.
Investors have reacted unprecedentedly to the volatility
and uncertainty caused by the global epidemic, and the historical
collapse of investor risk tolerance has led to the largest quarterly
capital redemption in the hedge fund industry since the financial
crisis. Overall, the investment value of hedge funds fell by US$333
billion in the first quarter, reflecting the stock market sell-off and
widening credit spreads. Due to this round of decline driven by poor
performance, the total hedge fund assets have fallen below US$3 trillion
for the first time since 2016.if you want know more,
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