A troubled trend in hedge fund land: Redemptions are soaring even at solid hedge funds with strong performance. Hedge funds, according to Morningstar, lost $19 billion via redemptions in November 2008. The article notes a dramatic increase in redemptions at 5-star funds in November.

"It's almost as if investors had redeemed all they could from their 2-star funds and still had to raise cash somehow. In fact, outflows from 5-star hedge funds jumped over 100% from October to November." This is not how the industry is supposed to work. But then again these are extraordinary times.  

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