The flight from hedge funds has been overblown, after winter's losing strategies turned a corner in March, one industry insider told CNBC Thursday.
"It's been a roller coaster," said Don Steinbrugge, managing partner at Agecroft Partners. "The first two months of the year, anything that had a lot of equity exposure, high yield or less liquid credit got killed. Those are the strategies that are doing really well in March."
Despite a March rally, hedge funds are wrapping up a "terrible quarter" after a rocky start to 2016, Steinbrugge said. He expects hedge funds to end the quarter 2.1 percent in the red. The pullback prompted onlookers, like those quoted in a recent Wall Street Journal article, to say the industry is falling behind.