Amid high market volatility, investors redeemed $27.5 billion of hedge funds between April and June, bringing total first-half withdrawals to $7.7 billion. No category of hedge funds attracted fresh money from investors in the second quarter.
Total assets ended the second quarter at $3.8 trillion, down about 5% from March, according to the report, which also suffered from fund performance. The funds’ weighted composite index is down 5.78% over the year, according to HFR.
Only macro hedge funds, which trade a wide range of assets, such as bonds, currencies, rates, stocks and commodities, saw asset gains in the second quarter. Contrary to the average performance of the sector, they posted a positive return of 8.61% in the first half of the year.