Investors are turning their backs on Ucits-managed hedge fund strategies with cash outflows in the first six months of the year totalling €19.4bn, way in excess of the total outflows seen in the whole of 2022, according to a report by CityWire.

The report cites recent analysis by Lupus Alpha as confirming the total and highlighting that in the whole of last year outflows were €17.6bn.

The outflows come despite Units hedge funds outperforming their unregulated peers with an average performance of 1.96% – roughly on par with bonds but trailing a long way behind equities.

According to Lupus Alpha, statistics from the Deutsche Bundesbank show that investors are switching the withdrawn capital to fixed income investments and bonds with institutional investors moving quicker than private investors in reallocating away from regulated hedge fund strategies.