Investors Return to Hedge Funds After Punishing Them Through October

January 8, 2012 James Heinsman Hedge Fund Industry

Recent data has revealed that investors across the globe have forgiven hedge funds, with firms seeing an end to months of heavy losses and regaining revenue in November.

In October, investors pulled $9 billion out of hedge funds, after withdrawing $2.6 billion in September. In November, hedge fund managers saw an increase of $3.6 billion in investments.

“After months of outflows across nearly every hedge fund category, November saw outflows in only two investment styles,” said Sol Waksman of BarclayHedge.

During the outflow months, investors pulled billions from emerging market funds, as well the popular strategy of equity long-short funds. In November, they returned to invest in multi-strategy funds and macro funds.

The industry has been boosted back to a value of $1.71 trillion, but has yet to return to its peak of $2 trillion reached earlier in 2011.

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