In particular, funds flew out of the U.S. and back toward the U.K. Luxembourg is not on the picture, not because of non availability of data as a recent IMF paper wrongly states, but because the IMF has neither consulted the ECB, or the BCL, its website, or its publications.
At the same time, the recent growth of hedge funds presents some formidable challenges to the achievement of public policy objectives, including significant risk-management challenges to market participants. If market participants prove unwilling or unable to meet these challenges, losses in the hedge fund sector could pose significant risks to financial stability.