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Hedge funds see third year of outflows as JPMorgan spots ‘new low’ for industry

'The ratio of the hedge fund industry’s AUM to that of traditional mutual funds and ETF’s had declined to a new low at the end of 2020,' JPMorgan says

Hedge funds have struggled to match the returns of so-called passive funds that track the performance of some of the major indexes
Hedge funds have struggled to match the returns of so-called passive funds that track the performance of some of the major indexes Photo: Behrouz Mehri/Getty Images

The hedge fund industry witnessed outflows of $30bn in 2020 — the third consecutive year of outflows and the fourth year of outflows in the last five years.

JPMorgan analysts, in a report dated 19 January, noted the trend as hedge funds have struggled to match the returns of so-called passive funds that track the performance of some of the major indexes.

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