Hedge-Fund Clients Pulled $74 Billion in January, TrimTabs Says

Hedge-fund investors withdrew $74 billion in January as the economy worsened and equity markets fell, according to a report from TrimTabs Investment Research.

The withdrawals were the second highest on record, after $117 billion of outflows in December, the Sausalito, California- based firm said. Investors have pulled $315.6 billion from hedge funds since September, according to data compiled by TrimTabs.

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Investment losses and redemptions reduced hedge-fund assets to $964 billion as of Jan. 31 from $1.9 trillion in May, TrimTabs said. Customers removed money from 13 of 14 fund categories, led by $20 billion in outflows from those that invest in companies going through events such as takeovers. Funds that only buy stocks attracted $2 billion, TrimTabs data show.