Investors withdrew $399 billion from hedge funds, or about 20% of assets, in 2008, according to data from Hennessee Group. On top of an average 18.3% market decline, or $382 billion in investment losses, the total $781 billion hit that hedge funds took was severe.

At the start of the year, the hedge fund industry had an estimated $2 trillion in assets. That is now depleted to $1.2 trillion.

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