Bloomberg – Geneva funds of hedge funds have failed to repair the damage caused by market losses and Bernard Madoff as investors withdrew money four times faster than the global average in July.
Withdrawals climbed to $2 billion from $500 million in June, according to data compiled by Eurekahedge Pte., which collects data on hedge funds worldwide. Assets invested in Geneva-based funds of hedge funds have slumped 74 percent to $14.2 billion since the end of 2007.
Outflows, relative to the size of Geneva’s funds of funds industry, outpaced those worldwide as local banks struggled to restore investor confidence after Madoff-related losses of about $7 billion. While single manager hedge funds are making a comeback after their worst year on record in 2008, funds of funds are still losing clients.