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Hedge funds managed by people other than Ken Griffin have had a rough go over the last year or so. Returns stink. Inflows are essentially non-existent. The mortality rate is beginning to have the look of an extinction event, with the biggest names in the biz deciding the whole hedge-fund game isn’t for them anymore. They’re even getting shit upon from beyond the grave by Jeffrey Epstein.

Still, there was one bright spot, a potential light at the end of the tunnel: In spite of how bad hedge funds suck, institutional investors were all in. A third planned to increase their allocations, and just 13% planned to cut them. That inflow problem was gonna be a thing of the past!

So, how’s that going?

Investors yanked $8.4 billion in July, bringing net outflows this year to $55.9 billion, according to an eVestment report on Thursday. That’s up from $37.2 billion for all of last year…. Long/short equity funds are having the hardest time, with net outflows this year of $25.5 billion, according to the report.

And that’s not even counting the lite hedge funds.

Investors have fled these so-called liquid alternative funds, pulling more than $30 billion in the first half, the most since the 2008 financial crisis, according to data provider Eurekahedge.

Hedge Funds Have Already Bled $55.9 Billion This Year [Bloomberg]
A $30 Billion Exodus Puts Hedge Funds for Masses to the Test [Bloomberg]



Hedge Funds Catch A Serious Case Of Alpha

Can there be a pandemic every month

Getty Images

As Far As We (And Presumably Steve Cohen) Are Concerned, It Took Two-And-A-Half Years Longer Than It Should Have To Raise $10 Billion

We all know this milestone should have been passed the minute Point72 opened to outside investors.

People Still Launching Hedge Funds Faster Than They Can Fail

Well, the numbers are finally in for 2012 and it was, relatively speaking, a bloodbath for hedge funds, with more going to their grave or down the drain than in 2010 or 2011. But there were still 235 more hedge funds at the end of the year than at its beginning, because those who have previously shuttered a hedge fund due to their failure to raise/make enough money gave it another go last year. Look for more of the same this year, as fresh-faced and not-so-fresh-faced hedge fund managers hang out a new shingle for a few months, only to find out that investors are only interested in having Ray Dalio manage their money.

By US Coast Guard [Public domain], via Wikimedia Commons

‘Whale Rock’ Not A Parody Hedge Fund Name, But Actual Firm Actually Killing It

And actually proving that investors can’t resist a hedge fund named for heavy things.