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December was a difficult month for most hedge funds based on the hedge fund letters we’ve seen so far. Looking more broadly, the hedge fund industry as a whole had some much worse months in 2018. The Eurekahedge Hedge Fund Index was “only” down 1.31%, which beat the MSCI AC World Index’s 7.61% decline during the month.
Equities took the plunge in December
Equity-focused hedge funds were the hardest-hit by far in December as it ended up being the worst month of a bad year for global equities. Equities sold off around the globe due to the Fed’s less-than-dovish commentary, according to Eurekahedge.

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Q3 hedge fund letters, conference, scoops etc
U.S. stock indices were the worst-hit in December as the S&P 500 tumbled 9.18% while the Dow Jones Industrial Average slumped 8.66%. Those performances were bad enough to make December the worst month for both indices. Eurekahedge also noted that it was the Dow’s worst December since the Great Depression.
Asian stocks also continued to slump last month even though U.S. President Donald Trump and Chinese President Xi Jinping agreed to delay their next round of tariffs. Brexit continued to weigh on European stocks.
Hedge funds feel the crunch
Because of the weakness in global equities, long/ short equities hedge funds recorded $18 billion in performance-based losses and $3.5 billion in redemptions in December. Investor redemptions from equity-focused hedge funds reached $18.3

Article From: "Michelle Jones"   Read full article