January afforded global equity managers no time to rest on the laurels of a strong 2007, when the median gain for such funds was 13.37%. As economic conditions worsened and investors began to accept that the global economy was slowing, the broad equity markets plunged, pulling long/short funds down with them.
The S&P 500 lost 6.12% in January, while across the Atlantic the FTSE 100 gave up 8.94%. Meanwhile, the MSCI World Index fell 7.64%, the Sensex plunged 13% and the Nikkei dropped 11.21%. As one hedge fund manager recently put it, "I've been managing money since 1995,