News Digest: Hedge funds losses mount in Q2 of 2022
September 5, 2022
Hedge funds have lost steam for the second quarter in succession, according to data published by Citco. The funds administered by the group lost 6.81% over the April-June quarter, on top of the 3.23% drop during the January-March quarter of 2022.
The largest funds suffered the biggest losses during the second quarter, as was the case in the first quarter. Hedge funds with $3 billion or more lost around 8.14% while those between $200 million and $500 million fell by 6.36%, says the Citco report. It further adds that these declines were in sharp contrast to 2021 numbers where the largest hedge funds gained the most.
Besides the quarterly losses, the hedge funds also saw net inflows drying up, which incidentally has been the case during each quarter of 2021 and during January-March of 2022. Nearly a third (32.81%) of all hedge funds delivered positive returns during the second quarter, which was lower than the 40.21% during the first quarter.