Hedge funds have suffered their worst quarterly outflows in more than a decade after market volatility and uncertainty during the coronavirus pandemic prompted investors to flee.  

Investors pulled $33bn from hedge funds in the first three months of the year, according to data group HFR. This marked the industry’s fourth-largest quarterly outflow in its history, and the highest since the second quarter of 2009 when clients yanked $42bn. 

“Investors reacted to the unprecedented surge in volatility and uncertainty driven by the global coronavirus pandemic with a historic collapse in investor risk tolerance and the largest capital redemption from the hedge fund industry since post-financial crisis,” Kenneth Heinz, president of Hedge Fund Research, said in the company’s quarterly report.