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More than 1k hedge funds closed last year, the most since 2008

Richard Drew / AP

More hedge funds closed in 2016 than in any year since the 2008 recession, as investors moved money to larger firms and withdrew assets, reports Bloomberg. Over 1,000 firms were liquidated, the most since 2008, and only 9,893 asset management funds remained open, the fewest since 2012.

As Bloomberg points out, the data — compiled by Hedge Fund Research Inc. — rounds out a difficult year for hedge funds, which have been criticized for their high fees and underperformance. Meanwhile, the decline has proven to be beneficial to investors, as hedge fund management fees have already fallen to 1.48%, and the average performance charge has dropped 10 basis points to 17.4%.

Why this matters: The data reveals the growing trend toward passive investing and away from active investing.