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In the week ending November 30th 2018 Hedge Fund Research (HFR) said that emerging market hedge funds are on track for their worst annual performance since 2011, extending their losses. As a consequence, investors redeemed $3.1bn from Emerging Market hedge funds in 3Q18, the largest quarterly redemption since 1Q 2009. Total EM hedge fund capital fell by $4.0bn in 3Q18 to $227.1bn (RMB: 1.58tn, Brazilian Real: 883bn, Indian Rupee: 16.1tn, Russian Rouble: 15.3tn, Saudi Real: 852bn).

HFR's Emerging Markets index had fallen 3.7 per cent in October alone. The eighth consecutive month of decline pushed year to date losses to 10.7 per cent, on track to be the worst since the index lost 14 per cent in 2011.

In the meantime, the hedge fund world is undergoing a period of profound change due to performance headwinds, pressure to lower fees, and increased competition from other alternative-asset classes; Senior investment professionals at hedge funds are projected to take a hit to their pay of more 10 per cent this year as the industry struggles through one of its worst periods since the financial crisis and multiasset strategies and managers seem to be suffering, whether it's due to their own success or poor performance.

Purpose Investments ......................

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