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
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Spring 2012. For the latest Global Review (Autumn 2012) click
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.
ISSN: 2151-1845 / CDC10004H
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