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Hedge funds assets shrink amid investors withdraws, losses

Published 07/21/2022, 12:21 PM
Updated 07/21/2022, 12:31 PM
© Reuters. FILE PHOTO: The skyline is seen in Manhattan, New York City, U.S., August 21, 2021. REUTERS/Andrew Kelly/File Photo

NEW YORK (Reuters) - Hedge funds assets fell below $4 trillion in June, dragged down by poor performance and investors' withdraws, data provider HFR showed on Thursday.

Amid high volatile across markets, investors redeemed $27.5 billion of hedge funds between April and June, bringing total withdraws in the first half of the year to $7.7 billion. No hedge fund category lured fresh money from investors in the second quarter.

© Reuters. FILE PHOTO: The skyline is seen in Manhattan, New York City, U.S., August 21, 2021. REUTERS/Andrew Kelly/File Photo

Total assets ended the second quarter at $3.8 trillion, down roughly 5% from March, it said, also battered by the funds performance. The fund weighted composite index is down 5.78% in the year, HFR said.

Only macro hedge funds, which trade a broad range of assets, such as bonds, currencies, rates, stocks and commodities, posted assets gains in the second quarter. Contrary to the industry average performance, they posted a positive return of 8.61% in the first half of the year.

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