Hedge Funds

Research group forecasts gloomier times for hedge funds


As many as 1,600 funds, an estimated 20% of all hedge funds in operation today, are likely to close within the next two years due to poor performance in a market that is becoming overly crowded, according to a forecast column published this week by the U.K.'s Centre for Economics and Business Research.

The report also suggests investors seeking excess returns might be better off putting their money to work at race tracks, based on the current risk-reward profile of the average hedge fund. The research group notes that the broad cross-section has posted poor performance over the last