A few weeks ago, we reported that even when the market was hitting all time highs ahead of the historic October bloodbath, hedge fund investors were growing increasingly nervous, and rushed to redeem $15 billion from the space in September, the largest single monthly outflow in years, bringing year-to-date net flows to flat after being stubbornly in the green for much of the year despite what has been another deplorable year for hedge funds.

This was not the first time either: over the last three years, investors had removed over $100 billion from the industry, but performance gains had offset these losses... at least until last month.

And then October came which was not only a "bloodbath across almost every strategy", but was the worst month for hedge funds in 7 years.