Investors withdrew a net of $4.6 billion from hedge funds in March, according to eVestment, marking the fifth month out of the past six where redemptions exceeded allocations. The March figures brought the first-quarter outflow to a total of $14.35 billion.
One exception to the exodus: hedge funds that invest in commodities. Those funds netted more investor cash in the first quarter than any other type of hedge fund, and their $4 billion of inflows was that category’s largest for any quarter in more than six years.
Despite the outflows, hedge-fund performance hasn't been half bad lately. In March, an all-strategies benchmark of hedge funds delivered returns of 2.82 percent, according to Preqin, which tracks hedge fund performance, making it the best month for hedge funds since January 2012. But that still fell short of the 4.3 percent return produced by a more traditional mix of stocks and bonds.