Hedge Funds - 210 billions in withdrawals & bad performance

SAN FRANCISCO (MarketWatch) – Hedge funds saw a record $210 billion drop in assets under management during the third quarter as investors redeemed an unprecedented amount of money from the industry after poor performance, according to a survey released Friday. “With losses continuing through October, it appears that 2008 will be the worst year on record for both hedge-fund performance and industry asset flows,” said Kenneth Heinz, president of Hedge Fund Research, which produced the report. Hedge funds oversaw $1.72 trillion at the end of September, down from $1.93 trillion at the end of the second quarter, Hedge Fund Research said. That’s the largest quarterly decline on record, according to the firm. Net capital redemptions totaled $31 billion in the quarter, also a record, the firm added. Withdrawals came during a period of dismal performance for the funds. Hedge Fund Research’s main index lost nearly 8.9% in the third quarter, leaving it down more than 10% so far this year. Funds of hedge funds, which invest in a range of outside managers, also saw assets under management fall by $78 billion as investors withdrew $13.3 billion in the third quarter, Hedge Fund Research said

forced sellers. that why I buy whatever goodies they leave for me