Investors pull $150bn from hedge funds

Investors withdrew close to a net $150bn from hedge funds last month despite moves by dozens of funds to halt or suspend redemptions. The record December figure, equivalent to about 10% of industry assets, extends the run of outflows to four consecutive months and has increased the total net outflow for 2008 to $200bn. The size of the once lucrative industry has almost halved in the past year, to $1,000bn under management, according to TrimTabs Investment Research and Barclay Hedge. Conrad Gann, chief operating officer of TrimTabs, said he foresaw more redemptions in the first quarter of 2009.