Hedge funds to see record withdrawals

Hedge fund investors believe the industry will see even bigger withdrawals this year than last, when record levels of cash left the sector. A survey of investors by Deutsche Bank found that a third expect withdrawals of more than $200bn, after a net $155bn was taken out last year, according to consultancy Hedge Fund Research. Only a quarter of investors expect net inflows into the industry, and 82% of the 1,000 respondents said redemptions were the biggest issue for hedge funds.