Investors withdrew $40 billion of assets from hedge funds in October, Dow Jones reports. Coupled with a $115 billion decline in holdings during the month, the $155 billion hit was the worst one-month decline in assets on record with Hedge Fund Research. By comparison, hedge funds lost $210 billion in the third quarter.

 

This month and next, year-end redemption requests at hedge funds are expected to be massive. That being the case, should hedge funds need to sell off positions, the market could decline even further.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.