Investors removed -$19.64 billion from the industry in December, bringing total 2018 investor redemptions to -$35.3 billion, the second highest investor redemptions since 2009, according to new eVestment data.
Performance-related asset declines of -$52.4 billion during the year, coupled with those investor redemptions, reduced total industry assets down some -$87.7 billion. The industry ended 2018 with about $3.189 trillion assets under management.
Meanwhile, among primary hedge fund strategies, big asset losers for the full year 2018 were managed futures funds (-$18.41 billion), multi-strategy funds (-$17.93 billion) and long/short equity funds (-$13.69 billion), eVestment noted.
Multi-Asset funds were the biggest asset losers in 2018, with investor redemptions at -$38.5 billion, eVestment noted.
According to eVestment, 2018 was not a good year for the industry as a whole; performance and investor flows were negative and the industry’s total assets under management fell by the most since 2008.
In addition, the majority of managers lost money for their investors and the majority of funds saw investors remove more money than they allocated, eVestment.
Despite this, 42 percent of managers were able to raise net capital during the year. Many of those raising significant amounts of new money produced returns that far outpaced their peers, likely leaving investor sentiment positive.
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