Hedge fund investors withdrew a record $152 billion in the fourth quarter as the industry posted its worst returns in almost two decades, according to a Bloomberg report.
Hedge Fund Research found that global assets dropped to $1.4 trillion at the end of the year, the same level as 2006 and $525 billion less than a peak of $1.93 trillion in June.
“Investor risk aversion remained at historically extreme levels through year end,” Kenneth Heinz, president of Hedge Fund Research, said in the statement. “Investor redemptions were widespread and indiscriminate across fund strategies, regions, asset sizes and performance.”
Investments by hedge funds lost a record 18.3 percent last year, the most since the Chicago-based firm began tracking data in 1990.
Earlier reports showed a decline in hedge fund wealth last year. Assets fell 48 percent to $998.4 billion.