BOSTON, June 10 Investors pulled a net $5.9
billion out of U.S. hedge funds in April, marking the
industry's biggest outflow in 6-1/2 years as they punished
managers for their worst-ever returns at the start of 2008.
According to new data released by TrimTabs Investment
Research and BarclayHedge late on Monday evening, investors
took $9.4 billion away from individual hedge fund managers and
added $3.5 billion to funds of hedge funds, portfolios that
spread select a group of individual hedge funds.
"April's outflow from hedge funds was not surprising
because hedge funds underperformed the S&P 500 in both March
and April," said Sol Waksman, chief executive officer of
BarclayHedge. "Market volatility and weak inflows into funds of
hedge funds suggest hedge fund flows were also depressed in
May," he added in a statement.
In March, the $1.8 trillion hedge fund industry, where
assets have doubled in the last three years, took in $22
The researchers found that April's outflow was the first
since December 2005 and the largest since October 2001.
(Reporting by Svea Herbst-Bayliss)