http://www.bloomberg.com/news/articles/2015-12-02/hedge-funds-brace-for-redemptions-as-losses-engulf-marquee-firms
Hedge fund investors are losing patience even with marquee firms as many of them struggle this year, especially those that offer macro strategies or stock funds heavily weighted to rising shares. Some managers have lost money for two years running, while others such as David Einhorn’s Greenlight Capital are suffering declines that rival their worst year. After the weakest third-quarter inflows in six years, the industry could see outflows in the fourth quarter, said investors and bankers who watch the ebb and flow of hedge fund assets.
“The fourth quarter will be flat and possibly negative,” said Peter Laurelli, head of research at Evestment Alliance, which tracks hedge fund investments.
Hedge fund managers got off to a promising start in 2015, outpacing equity benchmarks including the Standard & Poor’s 500 Index. The second half of the year has proved more challenging as volatile markets create some of the steepest losses since the 2008 financial crisis for some of the most prominent managers in the business.
Ackman, Einhorn
The $2.87 trillion industry added $45.3 billion in net deposits in the first nine months of the year, according to Hedge Fund Research Inc. Only $5.6 billion came during the three months ended Sept. 30, the lowest third-quarter take since 2009, when a net $1.1 billion was deposited. If no money pours into funds in the current quarter, inflows in 2015 will be at least 40 percent below last year.
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