Scandal at Largest Korea Hedge Fund Triggers Record Outflows
- Koreans pulled $256 million from local funds in October: NH
- Mezzanine funds are struggling after scandal at Lime: analyst
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South Korea’s $29 billion hedge-fund industry just saw its worst withdrawals ever, after its largest fund froze redemptions from investments on illiquid assets.
Outflows from local hedge funds reached a record 700 billion won ($598 million) in the past two months, with the total assets under management falling to 34.2 trillion won, according to Gilbert Choi, an analyst at NH Investment & Securities. It is the the first time since November 2017 that they suffer two straight months of outflows. The industry had rapidly grown in recent years amid the country’s record-low interest rates.