Investors pulled almost $30bn from hedge funds during the three months to the end of September, meaning the $3.2tn industry has now been steadily losing investors for a year and a half.

eVestment, which compiled the figures, said they pointed the way to a “leaner” hedge fund industry that “rewards managers who meet or beat expectations and [does] not allocate to those who do not”. But the data provider added: “Unfortunately, at the aggregate level, what that looks like is a lot of pain.”