(Bloomberg) News that hedge funds suffered redemptions of $25.2 billion last month may translate into some individual shops closing, but for the industry as a whole, it’s a drop in the ocean. The bad news is that this latest bloodletting won’t be a cure. Managers have a clouded future to contemplate.
For hedge funds worldwide, July was the worst month for redemptions since February 2009, according to an eVestment report. That followed net outflows of $23.5 billion in June, bringing the total to $55.9 billion so far this year. That’s a lot of cash, but look at it in the context of the $2.7 trillion managed by the industry, according to BarclayHedge data.
