According to a Lipper Tass report, hedge fund outflows were at its largest level ($158.9 Billion) ever. This statistic is not surprising since most hedge funds were not immune from the market movements in the 4th quarter of 2008. What might be surprising however is that managed futures outflows also increased in 2008. In fact, managed futures outflows where the 2nd largest (23.9 billion) of any fund strategy. I am sure that many Commodity Trading Advisors where scratching their heads when they received their redemption notices after posting stellar numbers. Nonetheless, this statistic clearly shows the impact one industry can have on another.
You can read more about this here.
Balarie Capital Management works with Pensions, Endowments, and Institutional Investors regarding their commodities and managed futures investments. Please contact us or access our managed futures database for more information.