Investors have, reportedly, pulled out money from hedge funds at the fastest rate since more than four years in December 2013.
The move follows poor performance by most of the managers in a year.
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In December last year, the SS&C GlobeOp Capital Movement Index, which calculates monthly hedge fund subscriptions less redemptions, measured minus 3.56% for December when compared to a measured minus 2.61% in the same month of 2012, reported Reuters.
Additionally, the SS&C GlobeOp Hedge Fund Performance Index revealed that hedge funds have made their investors an average of 12.32% last year following a 0.72% gain in December. However, this compares poorly with the rise of most stock indexes, the performance of which investors can access cheaply.
Meantime, the MSCI World Index has raised around 24% last year and the Capital Movement Index rose 0.16%, which shows that inflows into the industry have marginally outweighed outflows.
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By GlobalData
