Net outflows from the hedge fund industry totalled $80bn for the year to 18 October despite net profits hitting around $119bn according to a report by Reuters citing a new report from hedge fund specialist Aurum Funds.

Multi-strategy hedge funds are the top performer so far this year according to Aurum, posting positive returns of slightly ahead of the 5.6% returns from credit hedge funds.

Reuters quotes Don Steinbrugge, founder of hedge fund consulting firm Agecroft Partners, as saying that investors may have been tempted away by rising bond yields with the The 10-year yield on US government bonds have risen 146 basis points in the six months to 1 November.

"In addition, there has been has been a lot of assets flowing to private credit," Steinbrugge