HFR Global Hedge Fund Industry Report for Q3 2011: HEDGE FUND ASSETS POST SHARP DECLINE ON 3Q PERFORMANCE LOSSES

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Industry posts 4th worst performance quarter in history, reducing assets from record level; Positive investor flows concentrated in Relative Value Arbitrage; Macro sees outflows

Hedge funds posted the fourth worst quarterly performance in industry history in 3Q11, as a combination of uncertainty regarding the European sovereign debt crisis and weakening economic data contributed to volatility across equity, credit, commodities and currencies. These performance declines reduced total hedge fund industry capital by $85 billion.

The asset decline ends two consecutive quarters in which total capital under management eclipsed new record levels, and brings total hedge fund industry AUM to $1.97 trillion. The HFRI Fund Weighted Composite Index declined by -6.2 percent for the quarter, wiping out a small 1H11 gain and bringing year to date (YTD) performance for the broad based composite to a decline -5.4 percent.


Details: HFR Global Hedge Fund Industry Report: Third Quarter 2011