Hedge funds posted about $74 billion of outflows last month — the second-highest amount ever — but the losses are likely to slow as the funds' assets continue to shrink, according to TrimTabs Investment Research Inc.

Though many investors got caught in a bear-market trap after gains early last month, more selling could be in the cards, especially if the Standard & Poor's 500 drops below the 12-month low it set Nov. 20, TrimTabs said last week.

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