The global hedge fund industry, which has been hit by severe outflows and mark-to-market losses, is set to lose at least 25% of its assets in the last quarter, a global authority which tracks developments on these mystery players told DNA Money. The industry, which has shrunk from $1.8 trillion at the end of the second quarter to $1.63 trillion in September 2008, is set to lose at least $470 billion more by the end of December 2008. Aureliano Gentilini, global head of hedge fund research at Lipper, mailed, “Under a worst-case scenario, since the bulk of money outflows for the year will be recorded in the fourth quarter for a number of reasons, $30 billion outflows in Q4, combined with a negative performance reading of minus 10% for the broad hedge fund index in October through December, would lead to an overall reading of $1.16 trillion at the end of December 2008.”   more »