.

Simple Hedge Fund Outflow Model

.

.

Inflows

.

2005$47b

.

2006$228b

.

2007$278b

.

2008$20b

.

$573

.

Redemptions40.00%Assumption

.

Initial capital$229.2b

.

Losses20.00%Assumption

.

Outflows$183.36b

.

Leverage10Assumption

.

Asset sales$1,834b