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.