“Hedge funds saw their biggest loss of investor cash since the bull market in stocks began, even though the industry turned in its strongest performance in three years.” according to CNBC. According to industry tracker eVestment, this is the biggest exodus since 2009, investors protested low returns that come with high fees.
“Investor flows for 2016 resembled an industry in crisis.” “They were similar to mid-2011 and 2012 in persistence, but dwarfed outflows seen during the European sovereign crisis in magnitude. They were below the levels seen during the aftermat of the great financial crisis, but have been much more persistent.” said eVestment.
“The final three months of 2016 featured a surge o $43.2 billion in redemptions, the worse since the first quarter of 2009 as the economy was still trying to clib out of the Great Recession and the financial crisis. In December alone, investors pulled $23.7 billion.” according to CNBC.