The net new inflow into hedge funds collectively was a meagre $16.5 billion over the first quarter of 2008, according to Hedge Fund Research, in comparison with almost $200 billion in 2007. Some strategies fared better than others: macro hedge strategies posted $1 billion in redemptions; merger arbitrage strategies had outflows of $4 billion; while distressed strategies attracted $8 billion. Macro strategies, however, posted returns of 4.7% in Q1, while the overall hedge fund index was down more than 3%.
