October redemptions largest yet for hedge funds
Industry experiencing crisis of negative investor sentiment
Investors redeemed an estimated net $17.2 billion from hedge funds in October. Year to date (YTD), there has been net $80 billion removed from the industry. October's outflow was the fourth month of redemptions in the past five and the seventh of 2016. Because of the breadth of products experiencing outflows and the persistence of redemptions outweighing new allocations, it is clear the industry is experiencing a crisis-like wave of negative investor sentiment.
The breadth of redemption pressure
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