Hedge Fund Withdrawals Lower

This is good news for the markets:

From Bloomberg:

Investors pulled out a total of $11billion from hedge funds in February as stocks worldwide tumbled amid signs a global recession is deepening.

Redemptions were about a third of the value in January, after the industry lost about $400 billion from its June peak to December through market losses and withdrawals, a preliminary Eurekahedge Pte report showed.

This is a positive piece of news because it means that liquidity will decrease at a slower rate and may improve. Improved liquidity will translate into lower volatility. My guess is that lower volatility will translate into better investor confidence and drive more money to stocks.