Funds Of Funds Face Record Redemptions

Somehow this isn’t surprising.

Bloomberg: Investors pulled a record $85 billion from firms that invest in hedge funds in the first quarter after the disclosure of Bernard Madoff’s $65 billion fraud, according to data compiled by Hedge Fund Research Inc.

The pace of withdrawals from those funds of hedge funds quickened from the prior record of $50 billion in the last three months of 2008, the Chicago-based research firm said. Assets in the funds dropped to $525.6 billion, the least since 2006. Investors pulled $103 billion from hedge funds overall from January through March.

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