IFSL (International Financial Services London) says hedge fund assets could fall another 20% over 2009. A report by the non-profit group suggests that the 30% fall in 2008 would have been bigger had redemptions not been halted, particularly in the US. As those redemptions take place this year, assets will naturally decline further. Falls in assets are a result of both redemptions and investment losses, although IFSL reports that the former had greater impact on asset reduction in Europe, while in the US and Japan negative performance accounted for a bigger proportion.
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