News Digest: Hedge funds losses mount in Q2 of 2022
September 5, 2022
News Digest:
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.
Takeaway:
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.