Hedge funds dive below high-water marks again
By Rob Copeland
Wed Apr 11, 2012
Only 38% of funds were above water in 2011, compared with 73% in 2010.
Fewer funds were above their high-water marks last year than
even in 2008, according to a recent analysis of returns from
Americas-based hedge funds reporting to the
HedgeFund Intelligence database.
Funds above their high-water marks by year
||Key: + Above HWM / - Below HWM
(+/- do not denote performance)
Source: HedgeFund Intelligence database.
The widespread, if shallow, losses of 2011 resulted in a
stark decline in the number of funds earning performance fees,
and perpetuated the continuing nightmare of those that still
haven't recovered their pre-2008 high-water marks (see chart to
the right). Only 38% of all funds rose above their high
watermarks in 2011, while 62% were left to subsist on
management fees alone.
Only 39% of funds ended 2008 above their high-water marks,
and at the time it seemed that it might...
TAKE A FREE TRIAL
The full contents of this article are available to Absolute Return subscribers and trialists only.
To continue reading please, take a free trial, subscribe or log in.
Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.