All four major hedge fund subclasses as well as the overall industry had net outflows in 2016 despite positive performance in each category. Event-driven strategies saw the largest disparity between client redemptions and positive performance. The subclass returned 10.5% during the year, of about $70.6 billion in added value, while seeing $38.3 billion walk out the door.
The first quarter was the only period of negative performance as a whole despite global macro funds growing by $5.5 billion. The latter half of the year saw more activity on both fronts, with $46.9 billion in net redemptions and $167.1 billion in added value.