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.

Funds above their high-water marks by year
  Key: + Above HWM / - Below HWM
(+/- do not denote performance)
Source: HedgeFund Intelligence database.
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.

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...


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.

Subscribe now