Combined with investment losses, hedge fund industry assets may shrink to $1.3 trillion, a 32 percent drop from the peak in June.
ie 300-400bn of asset withdrawal from markets caused this 30-40% decline
This is logical considering leverage used is 10-20x
Judging from these no.s another 300-400bn needs to be cleaned up, ie another 30-40% decline from here probably?
Investors withdrew a record $43 billion from hedge funds last month, more to come probably.
Average hedge fund down 18 percent this year. A bit too light... probably wrong no...
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