What’s new: Global investors cashed out $33 billion from hedge funds, or more than 1% of the industry’s $2.96 trillion in assets, in the first quarter during the coronavirus pandemic, according to a Wednesday report from industry tracker Hedge Fund Research Inc.
The figure marked the largest quarterly outflow since the second quarter of 2009, when investors pulled $42 billion from hedge funds during the global financial crisis.
Why they did it: Hedge Fund Research President Kenneth J. Heinz said the large withdrawal of funds reflected an “unprecedented surge in volatility and uncertainty” created by the global pandemic.
Global stock markets also posted huge losses during the three-month period as investors fled the market, with the U.S. benchmark S&P 500 down 20%.
Total global hedge fund assets fell below $3 trillion in the first quarter of this year for the first time since the third quarter of 2016 as investors sold down their positions amid the volatility, the report showed.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.
Related: China’s Hedge Funds Were Building Cash War Chests in March
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Doug Young (dougyoung@caixin.com)
