Funds of funds: Funds of hedge funds slow down

But withdrawal of investors with unrealistic expectations seen as advantageous.

net asset flows into funds of
hedge funds, $bn

Funds of hedge funds have experienced outflows in the third quarter, but this doesn’t mean investors are turning their backs on the products. Research from HFR indicates a decrease in net inflows to funds of hedge funds over the course of 2005, with $9.4 billion in net inflows in the first quarter, $3.47 billion in the second but an outflow of $1.2 billion in Q3.

In part, the slowdown is attributed to the flat returns produced by funds of hedge funds this year.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access