According to eVestment’s latest Hedge Fund Industry Asset Flows Report the breadth of hedge fund asset outflows in October was the industries’ largest in 2016, with 61% of reporting funds seeing net outflows for the month.
Investors, the report says, redeemed approximately $14.2bn in October, bringing year-to-date outflows to $77bn. October’s outflow marked the fourth month of redemptions in the last five.
Industry assets now stand at $3.03 trillion now following this string of disappointing months for hedge funds.
Event driven funds took the biggest hit among major strategies, with -$4.49bn in flows in October, bringing YTD flows to -$38.22bn, almost double the -$19.38bn event driving funds lost in 2015, the report revealed.
The report added that the outlook for macro hedge funds may actually be positive, despite October at -$180m being the 10th monthly net outflow for the universe within the last year.
Following the big outflows in event driven funds, long/short equity funds and relative value credit funds saw big outflows in October, with -$3.41bn and -$3.20bn respectively.
Managed futures funds, which had been largely positive so far this year, took a turn to the negative in October, with -$1.63bn in flows.
The report added that flow trends were negative across all major geographies, with funds focused on the America’s seeing the largest outflows at -$7.67bn.