Institutional investors withdrew an estimated $55.4 billion from hedge funds in 2022, compared to an inflow of about $15.1 billion in 2021.

Institutional capital in global hedge funds was $3.83 trillion at the end of 2022, compared with $4.01 trillion at the end of 2021. The value of the funds increased by $44 billion in the fourth quarter, according to a Friday report by the Research firm HFR tracking the global hedge fund industry.

HFR explained that hedge fund managers…