Outflows from Hedge Funds Surge to $74 Billion

Outflows from hedge funds soared to $74 billion in January, the second-highest level on record, according to TrimTabs.

The figure would have been even higher, were it not for a bear market rally early in the month, TrimTabs said. The biggest outflows came from event-driven funds, which lost $19.8 billion. The only category to take in money was merger-arbitrage funds, which reaped $2 billion.

Since September, hedge funds have lost $315 billion. However, in light of the fact that outflows have been so steep in the past few months and the remaining asset base is half of what it was eight months ago, TrimTabs expects withdrawals to slow in February.