Hedge fund redemptions a dismal end to a bad year

Managed futures funds saw big inflows in 2016, but left investors disappointed

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December was a fitting end to a difficult year for the hedge fund industry. While the level of outflows during the month was on par with prior years – an average of $18 billion removed over the last five Decembers – it marked the sixth month of outflows in the last seven, and resulted in Q4 not only being the fifth consecutive quarter of redemptions, but also the largest quarterly outflow from the industry since Q1 2009, and the height of the financial crisis.

Throughout 2016, investors reacted