Outflows continued for hedge funds in Q4 2018 for the third consecutive quarter. Investors withdrew a net $45.1bn from the industry, leading to net outflows of $33.9bn in 2018, the highest annual outflow witnessed since 2016 (-$109.8bn). Accompanied by poor performance across the industry, these capital withdrawals have culminated in industry assets under management (AUM) shrinking to $3.45tn, a reduction of 3.5% since the end of 2017. Industry outflows in Q4 were predominantly driven by both equity (-$20.9bn) and CTA strategies (-$21.3bn), which recorded the highest outflows across any top-level strategy tracked by Preqin.