US: Hedge funds – rentiers or warriors?

Mon Apr 16, 2012



The disappointment or even disgust many investors feel is not just about losing money, or about losing money in a flat year. It’s the kind of repulsion one would have at seeing a police officer run screaming from a gunfight DATA INCLUDES: US hedge funds at a glance, assets, new funds, median performance


You're viewing the Global Review for Spring 2012. For the latest Global Review (Autumn 2012) click here

Josh Friedlander, online editor, AR

That sound you hear is of a few thousand investors wringing their hands over last year's widespread losses. In the Americas, 56% of hedge funds in our database lost money in 2011, falling an average of 1.59%.

The biggest names in the industry, despite all their theoretical advantages, did almost as badly, with the funds in AR's Brand Names list losing an average of 1.82%. Meanwhile, the correlation of hedge fund returns to the markets hit an all-time high, with US funds 89% correlated to the S&P 500 Index, up from a five-year average correlation of 76%. But bad timing and conservative positioning - less leverage, more cash and fear of shorting into rallies - left many hedge funds trailing the indices.



The disappointment...

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