Hedge funds lost only 3.9% in October, but overall, in the third quarter, they lost 16% of assets, ending at $2.497 trillion, due to heavy investor redemptions, according to a Wednesday report from HedgeFund.net.
Hedge funds-of-funds lost 14.9% of assets, to $1.224 trillion. It was the first time that hedge funds-of-funds lost assets in any quarter, ever since HedgeFund.net began tracking their flows in the fourth quarter of 2003.
With performance weak across the board, even hedge funds that concentrate on corporate bond strategies lost 15.1% of assets in the quarter. Long/short equity hedge fund assets also declined, by 19.2%.
Two of the categories to suffer the greatest percentages in asset declines were emerging markets hedge funds (down 26.1%) and distressed investing hedge funds (down 22.8%).