Early estimates indicate hedge fund assets fell 5.8% in January, to $1.748 trillion, according to HedgeFund.net.
The online service attributed the decline to net investor redemptions and fund liquidations of $124.7 billion during the month. The estimate is based on monthly results reported by nearly 1,600 funds.
HedgeFund.net said January was the fifth consecutive month in which hedge fund assets fell because of redemptions and liquidations.
One positive aspect, it said, was that investor outflows of $124.7 billion signified a slowing of redemptions from November and December.
Of funds that had redemptions in January, larger funds had a higher percentage of assets redeemed than smaller funds. HedgeFund.net estimated that the average redemption in January for funds with more than $500 million of assets under management as of Dec. 31 was 13.5%, versus 10.9% for funds with less than $20 million.
HedgeFund.net estimated that 57% of large funds had redemptions in January and 45% of small fund investors withdrew assets.
The monthly data was issued last week.