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In the week ending 30 September, 2016, industry insiders say that liquid alternative sector funds might be in the decline: since early 2016, liquid alts have seen investors withdraw about $5.1 billion in assets. The “Billion Dollar Club” assets declined at hedge funds managing more than $1bn following a rocky first half of the year marked by redemptions and lagging performance. Specifically, the 302 firms managing a combined $1.84 trillion suffered a drop of 1.99% in the past six months and 6.72% in the past 12. In real dollar terms, the "Club" has declined by $132 billion since July of last year.

Hedge funds have pulled some of their business from Deutsche Bank on concerns about the bank’s capitalization; Deutsche Bank came under intensified market fire after that news broke that several hedge funds are trimming their holdings at the German bank. Deutsche Bank’s woes reverberated across Wall Street as the commonly used gauge of market concerns, the CBOE Volatility Index VIX, rose about 15% at 14.28; while Deutsche later said that a “perception issue” caused a slide of its shares.

In investment news, hedge funds have misread the Fed and raised their bullish bets on the dollar to a seven-month high, positioning their bullish bets around the commentaries of the Federal Open Market Committee and Bank of Japan. Lansdowne reported huge losses on its bets against Glencore; Martin Hughes doubled his stake in Esure just weeks before its Go Compare arm is split off; hedge funds have missed out Alibaba’s rally toward its second best quarter since 2014; and Morphic Asset cl......................

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