# Hedge funds suffer big outflows in Q2 – data
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Hedge Fund Outflows Hit $7.8 Billion in Q2 Amid Market Volatility
Meta Description: Investors withdrew $7.8 billion from hedge funds in Q2 as market volatility triggered shifts to safer assets. Global equity funds hit hardest, prompting a
URL: https://financedigest.com/hedge-funds-suffer-big-outflows-in-q2-datahtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-24t172043z2lynxmpei7n0wnrtroptp4global-hedge-1736815380047-compressed.jpg)

By Nell Mackenzie

LONDON (Reuters) – Investors yanked a net $7.8 billion out of hedge funds in the second quarter, industry data published on Wednesday showed, as volatile markets sent many looking for safer places to keep their cash.

Large investors like pension funds, asset managers and family offices pulled more money out of hedge funds than they added, ending an 18-month trend of them investing more, according to Citco, a firm that provides administrative services to the sector.

Global [hedge funds](https://www.financedigest.com/what-is-a-hedge-fund.html "What Is A Hedge Fund") that bet on equity markets suffered the biggest withdrawals, losing $6.4 billion of the net outflows, Citco’s report showed. U.S.-based hedge [funds were big](https://www.financedigest.com/with-big-bets-on-musk-these-funds-may-have-a-tesla-problem-in-23.html "With big bets on Musk, these funds may have a Tesla problem in ’23") losers, followed by those in Asia and in Europe.

Financial markets have tumbled in 2022 as investors were rattled by central bank monetary tightening to fight soaring inflation and [fears of rapidly slowing economies](https://www.financedigest.com/uk-economy-set-for-smaller-hit-in-2023-than-previously-feared-imf.html "UK economy set for smaller hit in 2023 than previously feared – IMF"). Volatility has soared and stocks tanked, handing many hedge [funds large losses and forcing investors to sell](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") out of riskier assets.

Mark Dowding, the chief investment officer at BlueBay Asset [Management which also invests in hedge funds](https://www.financedigest.com/plastic-antibody-developer-strengthens-board-following-further-investment-from-mercia-fund-management.html "“Plastic antibody” developer strengthens board following further investment from Mercia Fund Management") on behalf of clients, said that since 2021 he had seen money shift towards private equity and private debt.

Yet with the economic cycle turning, it won’t be surprising that those [investors may come to regret shifting money](https://www.financedigest.com/virgin-money-shares-leap-on-higher-profit-investor-payouts.html "Virgin Money shares leap on higher profit, investor payouts") in that direction in quarters to come,” he said.

Sharp falls in traditional fixed income and [equity indices would draw investors back to hedge funds](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone"), he told Reuters.

In this environment, [hedge funds](https://www.financedigest.com/market-turmoil-a-boon-for-trend-following-hedge-funds.html "Market turmoil a boon for trend-following hedge funds") have had more of an opportunity to shine,” he added.

(Reporting by Nell Mackenzie; Editing by Tommy Reggiori Wilkes and Josie Kao)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---