Preqin Report: Five Straight Quarters of Hedge Fund Outflows

August 30, 2019 | Hedge Funds, News
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New report shows net outflows yet again in Q2

A Preqin report tracking hedge fund outflows showed more bad news for firms.

For the fifth-straight quarter, net outflows hit managers. Preqin says that funds saw $25.3 billion exit hedge fund shops in Q2 2019. This is according to the Q2 2019 Hedge Fund Asset Flows factsheet.

With that said, Preqin says that assets under management (AUM) at hedge funds increased by 4.4% since the end of 2018.

Preqin Report: Where is Money Going

The research firm said that U.S. hedge funds experienced the largest outflows in Q2. The category Rest of World, however, saw its total AUM hit $48.2 billion.

The firm also said in a release that inflows only occurred in credit strategies and multi-strategy hedge funds.

However, niche strategies experienced a decline of $6.7 billion in net outflows.

The figures align with a previous report from eVestment that showed large outflows in capital earlier this year.

In all of 2018, investors had withdrawn $37.2 billion from hedge funds. However, in the current year investor outflows already aggregate $55.9 billion, including $ 8.4 billion in July itself.

Investors have expressed frustrations with the 2-and-20 model. And in the last three years, more hedge funds have shuttered than opened, according to EurekaHedge.

For access to the Preqin factsheet, click here.

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