Head Funds calculate record losses

Head funds, managing the money of investors around the world lost 384 billion dollars last year, and the total value of assets in their management dropped to 1.5 trillion dollars with 1.9 trillion at a peak reached last summer, Interfax reports with reference to the Singapore Eurekaedge PTE study.

A even more gloomy evaluation of hedge fund assets for the end of last year is offered by Bloomberg with reference to the data of Hedge Fund Research Inc. According to their estimates, the global value of assets decreased to 1.4 trillion from 1.93 trillion in June last year.

The dramatic collapses of world stock markets in the second half of last year led to the flight of investors from hedge funds. As a result, in the fourth quarter of last year, investors withdrew $ 152 billion from the funds, each time provoking new waves of sales of all assets without exception.

For comparing the analytics of Hedge Fund Research Inc. Data is given for the last quarter of 2007, when investors brought a record 194 billion dollars to the hedge funds. According to the president of Hedge Fund Research Inc. Kennet Hinets, at the end of last year, "the flight of investors from risks reached extreme historical proportions."

In the analytical review of Eurekahedge PTE, which is referred by Interfax, there was a revaluation of the loss of hedge funds last year. Last week, Bloomberg assessed the loss of industry at 350 billion dollars.

According to updated data, the worst results were shown by funds using the Long-Short strategy, buying underestimated assets and playing short in overvalued. Their losses amounted to 64% of total losses and 72% of the removal of funds.

The so-called “event-driven” hedge funds and funds combining several development strategies became the only ones who could attract funds in 2008: the flow of funds in the Event-Driven funds exceeded withdrawals by $ 8.4 billion, and for companies using several strategies, this indicator amounted to 11.8 billion dollars.