HFR data reveal that $152 billion of capital was withdrawn by hedge fund investors in the fourth quarter of 2008 – the largest withdrawal in a quarter on record. Estimates that hedge fund assets would reach $2.25 trillion by 2010 now seem far too optimistic. HFR estimates that the industry at present has $1.4 trillion in assets. The HFRI Fund Weighted Composite Index fell by 18.3% for all of 2008, only the second calendar-year decline since 1990.
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