Hedge funds wrapped up another lackluster month in August by substantially underperforming the stock market, and investors are showing signs that their patience is wearing thin.
Swelling redemptions have been a noticeable trend over the past three months, which have seen a net of $15.56 billion in outflows from the $2.52 trillion industry.
The funds saw redemptions of $11.81 billion for July, the most recent month for which data is available, with fixed income the only strategy to see inflows, according to eVestment, a New York-based hedge fund research firm. Fund flows for the the full year, though, remain positive at $9.93 billion.
The recent flight is reflective of difficulties the industry has seen in a highly correlated market driven far more by the latest news out of Europe or Washington and not by individual company performance, experts say.
While the Standard & Poor's 500 posted a total return gain 2.25 percent in August, hedge funds rose just 0.66 percent. The story has been the same throughout the year, where the stock market has risen 13.5 percent and hedge funds have gained about 4.1 percent.
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