September flows into hedge funds were the third lowest this year, netting only $18.6 billion as some investors fled funds with subprime exposure, Reuters reports, citing data from TrimTabs Investment Research.

On the other hand, with emerging markets funds delivering the best performance during the month, 5.7%, 61% of the net flows to hedge funds, or $11.4 billion, went to these funds.

Hedge funds that have suffered the most from the credit crisis saw the greatest outflows, with equity market neutral funds losing $3.5 billion, equity long funds losing $1.4 billion and assets in fixed income funds dropping by $1 billion.

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